Uber pours $330M into India as Rapido overtakes in rides
What's the deal? Uber has pumped $330 million (US$396.7M) into its Indian subsidiary as it fights to regain ground lost to homegrown rival Rapido.
The company allotted 14.4 million equity shares to parent entity Uber B.V. in two tranches — US$27.2M in November and US$369.5M in January.
Why now? Uber India's finances have deteriorated sharply. Net revenue from ride-hailing plunged 89% to US$12M in FY25, down from US$109.6M the prior year.
Gross revenue — commissions from rides — stayed flat at US$353.6M. The gap suggests heavy spending on driver and rider incentives to stay competitive.
Meanwhile, Rapido has surged ahead. The Bengaluru-based startup crossed US$135.8M in income in FY25 and now commands roughly 50% of India's total ride volume, compared to Uber's 40%.
In four-wheelers alone, Uber holds about 45% market share, with Ola at 25-30%. Rapido, which entered cabs only in late 2023, has already captured over 20%.
What could go wrong? Uber faces a two-front battle. Rapido dominates bikes and three-wheelers with over 65% market share — segments where Uber has limited presence.
Uber chief executive Dara KhosrowshahiDealroom has a profile for this one. Try Dealroom → has acknowledged Rapido as the company's biggest competitor in India.
The signal: India's ride-hailing market is no longer a two-horse race between Uber and Ola. Rapido's rapid rise — fuelled by bike taxis and aggressive expansion — has reshuffled the pecking order.
Uber's capital injection shows it won't cede India without a fight. But competing against a nimble local player that owns the two-wheeler market will require more than money.
Sources:
Financial Express
Outlook Business
Economic Times
Entrackr
Image Source: Wikipedia Commons
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