14% Cabs, 31% Autorickshaws, 56% Bike Taxis: Is Rapido Set to Outpace Ola-Uber?

For years, the question of who reigns supreme in India’s ride-hailing market had a simple answer: Ola and Uber. But has that started to change? With a growing foothold across cabs, auto-rickshaws, and bike taxis, Rapido has emerged as a serious contender. How did this once niche player in bike taxis manage to carve out a significant market share in a space dominated by giants? And more importantly, could Rapido truly disrupt the Ola-Uber duopoly and reshape the market?

Let’s break down the numbers, strategies, and shifts in user behavior to understand how this triangular battle is unfolding.

Market Share: A Shifting Landscape

Rapido’s entry into the ride-hailing market has transformed the competitive landscape. According to recent industry estimates:

• In the cab category, Uber leads with 50% market share, followed by Ola at 34%, and Rapido trailing with a 14% share.
• The auto-rickshaw segment paints a different picture, with Uber holding 40%, Ola at 26%, and Rapido emerging as the second-largest player with 31%.
• Rapido dominates the bike-taxi category with a commanding 56% market share, leaving Ola and Uber far behind.

Rapido’s co-founder and CEO, Aravind Sanka, disputes these figures, claiming a stronger foothold: 18% in cabs, 33% in auto-rickshaws, and 61% in bike taxis. While the exact numbers may vary, Rapido’s rapid rise across categories is undeniable.
Source: Economic Times

Rapido’s Strategic Growth

1. Humble Beginnings to Unicorn Status

Founded in 2015, Rapido entered a market already dominated by Ola and Uber, which boasted valuations of USD 5 billion and USD 60 billion, respectively. With just USD 2 million in initial funding, Rapido focused on perfecting its bike-taxi operations. In a market where many bike-taxi startups failed, Rapido navigated regulatory challenges and optimized its operations to become the largest player in this segment.

By mid-2022, Rapido had expanded its services to include auto-rickshaw bookings and last-mile delivery. A USD 200 million funding round in 2024 pushed Rapido’s valuation to USD 1.07 billion, marking its entry into the unicorn club. However, this was a “flat round,” reflecting cautious investor sentiment given Ola and Uber’s entrenched presence.

2. Financial Efficiency

Rapido has managed to grow while keeping costs in check. Despite expanding operations, its workforce has remained steady at 700 employees for the past two years. Revenue grew by 46% year-on-year to INR 648 crore in FY24, and losses were nearly halved to INR 370 crore. In FY25, the first-quarter loss stood at just INR 17 crore, a significant improvement.

App Activity: Gauging User Engagement

The app activity data highlights Rapido’s rise:

• Monthly Active Users (MAUs): Uber leads with 33.6 million, followed by Rapido at 31.8 million, and Ola at 28.6 million.
• New Downloads (2024): Rapido amassed over 33 million downloads, outpacing Uber (17.7 million) and Ola (17.3 million).
• Total App Installs: Ola leads with 206 million, followed by Uber (178 million) and Rapido (120 million).
• Monthly Downloads: Rapido dominates with 6.3 million, compared to Ola (5.3 million) and Uber (5.2 million).

These figures reflect Rapido’s ability to attract new users and maintain a competitive user base, challenging Ola and Uber on digital platforms.

The Subscription Model: A Game Changer

Rapido has capitalized on a shift in the revenue model within the ride-hailing industry. Traditionally, platforms charged a commission (up to 30%) on fares. Now, a subscription-based model allows drivers to pay a fixed fee, which is generally lower. This shift has benefited Rapido in three key ways:

1. Driver Attraction: Lower subscription fees encourage drivers to join, reducing their operational costs.
2. Cheaper Fares: With reduced overheads, Rapido offers fares that are 10%-15% cheaper, attracting cost-conscious riders.
3. Market Disruption: This model has disrupted the three-wheeler and bike-taxi categories and is gradually impacting the cab segment.

Challenges for Ola and Uber

Ola’s Decline

Ola, once a leader in India’s ride-hailing market, has been steadily losing its competitive edge. The shift is evident from app activity data provided by platforms like Sensor Tower and Similarweb, which show that Ola has now dropped to the third position in terms of monthly active users and new app downloads, trailing behind Uber and Rapido.

Key Indicators of Decline:

• Daily Trips: Ola’s daily trips have dropped to 460,000, significantly lower than Uber’s 840,000 and only slightly ahead of Rapido’s 320,000.
• Car Segment Share: Ola’s market share in the car-hailing segment has shrunk to 30% in terms of trip numbers.
• App Metrics: While Ola boasts an impressive 206 million total app installations, its inability to retain active users and attract new downloads has weakened its position.

Uber’s Resilience

Unlike Ola, Uber has demonstrated resilience and adaptability, maintaining its foothold in the market, especially in the premium cab segment. Data shows that Uber has not only closed the gap with Ola but also surpassed it in critical metrics like daily trips and active user base.

Uber’s Strategic Strengths:

• Core Mobility Focus: Uber has stayed committed to its core ride-hailing business, helping it navigate post-pandemic challenges.
• Expanded Offerings: The company has diversified its services, introducing quadricycles, bike taxis in select cities, courier services, and even bus shuttle operations, starting in Delhi with plans for further expansion.
• Partnerships: Uber’s exclusive tie-up with Everest Fleet ensures a steady supply of vehicles, a significant advantage in a market where driver retention is a challenge.

Pressures from New Models:

• The rise of subscription-based revenue models, like Rapido’s, has started to challenge Uber’s traditional commission-based system.
• Uber’s commission revenues attract higher taxes compared to subscription revenues, creating an uneven playing field. The issue is currently being debated by the Central Bureau of Indirect Taxes and Customs (CBIC) and the Karnataka High Court.

Source: Economic Times

The Road Ahead

The Indian ride-hailing market is no longer a straightforward duopoly. Rapido’s dominance in bike taxis, significant share in auto-rickshaws, and steady growth in the cab segment have reshaped the competitive dynamics. As of 2024, the market is a three-cornered contest, with Rapido demonstrating its ability to disrupt and innovate.

While Uber holds its ground and Ola faces challenges, Rapido’s trajectory suggests it is well-positioned to continue gaining traction. The ride-hailing sector’s evolution will depend on how these players adapt to new revenue models, user preferences, and market conditions.

By challenging the status quo and leveraging strategic advantages, Rapido has established itself as a formidable player in India’s ride-hailing economy. As the numbers suggest, the competition is far from over.

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