Uber India's losses surge to ₹1,512cr in FY25
What's the story
Uber India Systems Pvt Ltd, the Indian subsidiary of global ride-hailing giant Uber, has reported a massive jump in its losses for the fiscal year ending March 31, 2025. The company's consolidated loss stood at ₹1,512 crore during this period. This is a stark increase from the previous fiscal's loss of ₹89 crore.
Segment impact
Ride-hailing segment losses and net revenue
On a ride-hailing segment basis, Uber India's losses surged over four times to ₹1,407 crore in FY25 from ₹330 crore in FY24. The company's net revenue from ride-hailing also witnessed a steep decline of 89% to ₹88 crore in FY25 from ₹807 crore in FY24. This sharp drop was despite the ride-hailing business' gross revenue (commissions from rides) staying flat at ₹2,604 crore during the year.
Financial strategy
Increased spending on incentives and discounts
Uber India's increased spending on incentives and discounts by 33% to ₹2,516 crore in FY25 has significantly impacted the company's financials. These payouts are deducted from gross revenue, resulting in a major decline in reported net revenue from ride-hailing. The company's accounting policy nets off incentives paid to drivers from revenue from operations, further compressing the topline contribution of its mobility business for FY25.
Revenue growth
Overall operating revenue grew marginally
Despite the decline in net ride revenue, Uber India's overall operating revenue grew marginally by 2.3% to ₹3,849 crore in FY25 from ₹3,762 crore in FY24. A major chunk of this came from support services provided to its parent and group entities. Revenue from these services rose sharply to ₹3,664 crore in FY25 from ₹2,936 crore in the previous fiscal year.
Market dynamics
Industry experts' concerns and Uber's response
Industry experts have warned that rising competition, increased dependence on incentives, and a shift toward subscription-based models are affecting the ride-hailing business' economics. Thin margins and fixed operating costs make this segment sensitive to incentive-led spending. Despite these challenges, an Uber spokesperson said the company is focused on investing in products tailored for Indian consumers.