Uber pours $330M into India as Rapido overtakes in rides
What's the deal? Uber has pumped $330 million (Rs 2,921 crore) 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 — Rs 200 crore in November and Rs 2,721 crore in January.
Why now? Uber India's finances have deteriorated sharply. Net revenue from ride-hailing plunged 89% to Rs 88 crore in FY25, down from Rs 807 crore the prior year.
Gross revenue — commissions from rides — stayed flat at Rs 2,604 crore. The gap suggests heavy spending on driver and rider incentives to stay competitive.
Meanwhile, Rapido has surged ahead. The Bengaluru-based startup crossed Rs 1,000 crore 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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