Uber CEO: Rapido Now a Bigger Rival Than Ola in India’s $13-Billion Ride-Hailing Market

Uber CEO Dara Khosrowshahi has said that Rapido, not Ola, is now the company’s biggest competitor in India’s rapidly evolving ride-hailing market.

“Ola used to be our main competition, now the tougher competition in India is Rapido,” Khosrowshahi remarked during a teaser of his interview on Zerodha co-founder Nikhil Kamath’s podcast People by WTF.

The comment reflects a major shift in India’s $13-billion ride-hailing industry, long dominated by Ola and Uber.

Rapido’s Rapid Growth

Founded in 2015 as a bike taxi aggregator, Bengaluru-based Rapido has expanded into auto-rickshaw and cab services, and recently began beta testing its food delivery app Ownly in Bengaluru.

Rapido now operates in 100+ cities, targeting Tier-2 and Tier-3 markets where affordable mobility options are in high demand. Its focus on two- and three-wheeler rides has helped it capture a price-sensitive customer base, especially after the pandemic.

Regulatory Scrutiny

Rapido’s rise hasn’t been without hurdles. The Central Consumer Protection Authority (CCPA) recently imposed a ₹10 lakh penalty for “misleading and unfair trade practices.” The watchdog flagged two of Rapido’s ad campaigns — Guaranteed Auto and AUTO IN 5 MIN OR GET ₹50 — as deceptive.

The CCPA noted that these ads ran for at least 548 days across multiple languages and directed the company to discontinue them immediately.

Ola’s Changing Priorities

While Uber and Rapido continue to battle for mobility dominance, Ola has shifted focus to electric vehicle (EV) manufacturing, battery production, geospatial tech, and artificial intelligence (AI).

This pivot has seen Ola’s ride-hailing market share shrink. Parent company Ola Consumer reported a revenue dip to ₹1,906 crore in FY24 from ₹2,135 crore in FY23. Consolidated revenue of parent ANI Technologies also fell slightly to ₹2,203 crore. However, the company narrowed its net loss to ₹328.5 crore in FY24 from ₹772.2 crore the year before, driven by reduced employee costs.

The Road Ahead

With Uber identifying Rapido as its biggest challenger, India’s ride-hailing battle is set to intensify. While Ola diversifies into new sectors, Rapido’s aggressive push into affordable mobility and food delivery could reshape the competition.