Uber CEO Dara Khosrowshahi says Rapido, not Ola, is now Uber’s biggest rival in India
Rapido has captured about 20% of the cab market, with Ola at 30% and Uber nearly 50%
The start-up’s FY25 GOV doubled to $1.25 billion, but rising losses remain a concern
Ola Got Distracted, Rapido Is Main Competitor Now: Uber CEO Dara Khosrowshahi
Uber chief Dara Khosrowshahi has acknowledged Rapido as the platform’s fiercest competitor in India, overtaking Ola in that position. Rapido, which began with bike taxis and later diversified into autos and cabs, now controls roughly a fifth of the four-wheeler market, steadily closing in on Ola while Uber maintains its leadership
Rapido Replaces Ola as Uber's Main Competition in India's Ride-Hailing Market
Summary
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Ola is not longer the biggest competition for Uber in India. Ride-hailing player Rapido has taken the place now. Speaking on the People by WTF podcast hosted by Zerodha cofounder Nikhil Kamath, Khosrowshahi said, “Ola used to be our main competition. Now, the tougher competition in India is Rapido”.
Rapido has expanded its market presence across two- and four-wheeler categories. The company now commands about 20% of India’s ride-hailing market, narrowing the gap with Ola’s 30%. However, Uber continues to dominate the cab market with nearly half the share.
The gross order value of Bengaluru-based start-up more than doubled in FY25 to $1.25 billion, compared to $500 million the previous year. But the surge has come at the cost of heavy cash burn and widening losses.
Rapido, founded in 2015, started as a bike taxi aggregator but has since diversified into auto-rickshaw and cab services too. Currently, its services are available in more than 100 cities across India.
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Last year, Rapido had raised $200 million in a funding round led by existing investor WestBridge Capital, taking the company's valuation to $1.1 billion.
The company has recently resumed bike-taxi services in Bengaluru after the Karnataka High Court raised concerns over the legality of the state government’s ban. It has also forayed into the food delivery segment to break the duopoly of Swiggy and Zomato.
Rapido in Regulatory Trouble
The ride-hailing platform has come under regulatory fire after the Central Consumer Protection Authority (CCPA) slapped a ₹10 lakh fine for publishing misleading advertisements and unfair trade practices. These ads include “Guaranteed Auto” and “Autor in 5 minutes or get ₹50”.
The authority has also ordered Rapido to ensure that any consumer who availed such offers, and still haven’t received the promised compensation shall be reimbursed in full. In addition, it also called these ads “false, misleading and unfair” to consumers. Hence, CCPA directed Rapido to discontinue these misleading ads with immediate effect.
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During the investigation process, CCPA also found that “T&C Apply” in Rapido’s advertisement was written in extremely small and unreadable font. According to the company rules, the amount of ₹50 will not be paid in Indian rupees, but “Rapido coins”. And the benefit was “up to ₹50” not exactly ₹50.
These coins were redeemable only for Rapido bike rides and expired within seven days. The conditions significantly diminished the benefit of the offer and pushed users to avail another Rapido service within a limited timeframe. The company gave a misleading impression of assured value, influencing consumer choice.
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