Rapido has been rising as a top ride-hailing service, gaining greater market share and users, and beating both Uber and Ola, despite its previous perception as a specialised bike-taxi service. The Company’s notable market share is driven by its taxi operations, which adversely affects Ola and Uber’s ability to stay ahead in a dynamic market.
In January 2024, Sensor Tower data, referenced in a Citi research report, indicated that Rapido surpassed Uber in monthly active users on Android, according to the Economic Times. Rapido registered around 50 million MAUs, corresponding to Uber’s 30 million by July. This comparison is remarkable in the Android-dominated market.
Rapido, a Bengaluru-based company, has become prominent in bike-taxis, inducing larger volume. It has also captured approximately 30% of the four-wheeler cab sector. In contrast, Uber holds 50% of the online four-wheeler cab market share, with Ola maintaining the remaining. This is why Uber CEO Dara Khosrowshahi recently mentioned that Rapido is the toughest competition compared to Ola in India.
Uber reacts to Rapido’s emerging expansion, including traditional price reduction strategies. ET sources reveal that in Bengaluru, Gurugram, and some Mumbai areas, where Rapido has experienced significant growth, Uber has reduced its fares by 20-25%. Furthermore, Uber has adopted Rapido’s model by introducing a subscription plan for drivers.
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Now, Drivers have the option to pay a fixed daily fee of Rs 120 or Rs 140 for unlimited platform access for 24 hours, eliminating the need to pay per ride commission. During this period, Uber reduced the goods and services tax by 5%.
