Uber CEO Highlights Rapido as Major Competitor in India

Uber’s chief executive, Dara Khosrowshahi, has identified Rapido as the leading competitor for Uber in India, surpassing Ola, which he described as “somewhat a distant third.” Khosrowshahi remarked that Ola used to be Uber’s main rival, consistently facing off against them in marketplace positioning. However, he noted that Bhavish Aggarwal has become somewhat sidetracked by other interests, and now Rapido has emerged as Uber’s most significant competition in India.

India as a Key Market for Uber

Khosrowshahi highlighted that India remains a vital market for Uber, ranking as the company’s third-largest for mobility trips. He stated, “When we talk about the business in India, the competition we face is essentially from Rapido.”

Rapido’s Subscription Model

When questioned about Rapido’s success, Khosrowshahi attributed it to its innovative subscription model for drivers. He noted, “While I am not on the ground, it appears that Rapido has developed a straightforward model whereby drivers pay a set amount and subsequently earn commission for the day. This leads to higher earnings for drivers compared to platforms like ours, which take a commission per ride.”

Rapido is said to charge a commission ranging from 0% to 5% per ride, in contrast to Uber and Ola, which take between 18% and 22%. Reportedly, as of April this year, Rapido had captured 40% of the ride-hailing market share across all vehicle categories.

Challenges Ahead for Rapido

Despite its growth, Khosrowshahi pointed out that Rapido has yet to achieve profitability. “Rapido is not making money. The true measure of a business’s success is not merely its growth rate while spending money; it is whether it can grow profitably. I believe Rapido is still far from this goal. Nonetheless, they have been resourceful and have rapidly developed their brand in the local market, earning our respect. We plan to compete vigorously with them.”

In the last fiscal year, Rapido saw an impressive year-on-year growth rate of 46.3%, with revenue reaching Rs 648 crore for the year ending March 2024. During the same period, the company managed to reduce its losses by 45%, bringing them down to Rs 371 crore. The report for FY25 is yet to be released.

Expansion into Food Delivery

Recently, Rapido expanded into the food delivery market, aiming to compete with Zomato and Swiggy. Notably, reports suggest that Swiggy is contemplating selling its stake in the Prosus-backed company due to potential conflicts of interest.