Uber CEO Sees Rapido ‘A Bigger Rival’ Than Ola In India

Uber CEO Dara Khosrowshahi said that ride hailing platform Rapido has emerged as its toughest competitor in India, overtaking Ola in category position.

Speaking on Nikhil Kamath’s podcast, Khosrowshahi said, “Ola used to be our main competition. Now, the tougher competition in India is Rapido,” signalling a significant shift in the market’s pecking order.

Rapido accounted for nearly 40% of India’s overall ride-hailing market across vehicle categories, while in the four-wheeler segment, it has been steadily chipping away at Ola’s market share, ET reported in May. 

As of April 2025, Rapido reportedly commanded a 20% slice of the four-wheeler market, compared to Ola’s 30% and Uber’s 50% as per the report. Rapido continues to narrow this gap by eating into rival shares on the back of rapid expansion and service additions, it added. 

The ride hailing giant has recently forayed into food delivery service with Ownly that has gone live in pockets of Bengaluru, taking on giants like Zomato and Swiggy. 

Besides, Rapido, Uber and Ola resumed bike-taxi operations in Bengaluru, following the Karnataka High Court ruling.

Ride-hailing services Ola and Uber also resumed their bike taxi operations in Bengaluru last week, following a two-month suspension. Notably, the Karnataka High Court ordered a ban on bike taxi services in the state, which came into effect on June 16. 

Battle For Supremacy In Ride-Hailing Deepens

India’s ride-hailing market has evolved into a highly competitive battleground, led by three key players — Uber, Ola, and the fast-rising challenger, Rapido. 

The duopoly Ola and Uber once enjoyed is now being disrupted by Rapido, which has carved out a distinct space for itself by focusing on bike taxis and affordable short-distance travel.

After Rapido and Ola, Uber also extended its software-as-a-service (SaaS)-based zero commission model to cab drivers a couple of weeks ago. Uber’s driver app now features a ‘Driver Pass’ option, allowing drivers to buy multi-day subscriptions.

Earlier this month, the feature was piloted by Uber in Delhi NCR, with conditions mandating cab drivers to buy a driver pass to continue services via its app.

Notably, Ola and Uber used to operate on a commission-based model, where drivers were charged a commission on every ride they completed. The commission rate was as high as 15-20% per ride. On the contrary, a subscription-based model facilitates a driver to keep 100% of their ride fare. In return, they need to purchase a weekly or monthly subscription of that particular ride-hailing service. 

The subscription model addresses drivers’ complaints that they end up losing a significant part of their earnings from each ride due to commissions. Notably, Rapido has been operating on this model since 2023, Uber and Ola followed the suit. 

With this in picture, the ride-hailing rivalry is set to deepen as all three players increasingly diversify into adjacent mobility services, from autos and bikes to EV-based rides.