Rapido, not Ola, is our biggest competitor: Uber CEO
What's the story
Dara Khosrowshahi, CEO of Uber, has revealed that Rapido has now become the company's biggest competitor in India. The revelation was made during his appearance on Zerodha co-founder Nikhil Kamath's podcast, People by WTF. Khosrowshahi said, "Ola used to be our main competition. Now, the tougher competition in India is Rapido."
Market dominance
Rapido's rise in ride-hailing market
Rapido has been making strides in India's ride-hailing market. According to a May report by The Economic Times, the company had captured some 40% of the overall market across vehicle categories. In four-wheelers, it was eating into Ola's share with a 20% market hold against Ola's 30% and Uber's 50%. Since then, Rapido has continued to gain ground against both rivals.
Business growth
Growth comes with increased cash burn
Rapido's gross order value (GOV) has skyrocketed to $1.25 billion in FY25, up 2.5x from $500 million a year ago. The growth is largely attributed to the company's service expansion efforts. However, this rapid growth has come at a cost, with higher cash burn rates pushing it further away from profitability.
New initiatives
New services and resumed operations
Rapido recently resumed bike-taxi operations in Bengaluru after the Karnataka High Court questioned the state government's ban on the service. Earlier this month, it also entered food delivery with Ownly, now active in select Bengaluru postcodes. The company hopes to take on Swiggy and Zomato with lower rates and fixed delivery fees.