Rapido is Leaving Behind Ola? Emerges As Direct Competitor to Uber India

For years, the Indian ride-hailing market was defined by one big rivalry: Uber vs Ola. The two global and homegrown giants locked horns across cities, fighting for dominance in cabs, autos, and later bike taxis. But in a striking shift, Uber’s CEO Dara Khosrowshahi has now admitted that the real competition looks different today. The company that’s giving Uber sleepless nights in India is no longer Ola—it’s Rapido.

Khosrowshahi, speaking on Zerodha cofounder Nikhil Kamath’s podcast People by WTF, was candid about how the competitive landscape has evolved. In a teaser clip, he said, “Ola used to be our main competition. Now, the tougher competition in India is Rapido.”

This acknowledgment is telling. For a company of Uber’s scale to openly call out a challenger signals just how much ground Rapido has gained in India’s mobility ecosystem—a market that continues to grow rapidly despite its challenges.

Rapido’s Remarkable Rise

Founded in 2015, Rapido began as a bike-taxi service—a niche that neither Uber nor Ola prioritized in their early years. Over time, this lean and hyperlocal strategy began to pay off. The company not only captured demand in smaller cities but also resonated with cost-sensitive urban commuters looking for affordable, fast transport.

According to a May report by the Economic Times, Rapido had already captured 40% of India’s overall ride-hailing market across vehicle categories. More importantly, in the highly competitive four-wheeler segment, it has been eating into Ola’s share.

As of April 2025:

• Uber held 50% of the market

• Ola dropped to 30%

• Rapido climbed to 20%

Industry insiders suggest that since then, Rapido has continued to strengthen its position, chipping away at both Uber and Ola.

Rapido's Growth Story

Rapido’s growth story has been nothing short of dramatic. The company’s gross order value surged to $1.25 billion in FY25, a staggering 2.5x jump from $500 million in FY24. Such growth is rarely seen in India’s mobility sector, where regulations, competition, and unit economics make scaling extremely challenging.

This expansion, however, hasn’t come without costs. Rapido’s aggressive push into new markets and services has led to a higher cash burn, pushing profitability further away. It’s the classic startup dilemma—grow now, profit later. Yet, Rapido appears committed to doubling down on its expansion strategy.

Like most players in India’s mobility sector, Rapido has had its fair share of battles with regulators. Earlier this year, the company was forced to suspend bike-taxi operations in Bengaluru after the Karnataka government imposed a ban.

But the tides turned when the Karnataka High Court questioned the legality of the state’s restrictions, allowing Rapido to resume services in the city. This moment highlighted both the fragile regulatory environment for startups in this sector and Rapido’s persistence in navigating these challenges.

The Diversification Bet: Food Delivery

If competing with Uber and Ola wasn’t enough, Rapido has set its sights on another highly competitive arena: food delivery. Earlier this month, the company quietly rolled out Ownly, its food delivery arm, in select Bengaluru postcodes.

The pitch? Disruption through lower rates and fixed delivery fees, directly challenging Swiggy and Zomato’s dominance. Whether Rapido can replicate its ride-hailing success in food delivery remains to be seen, but the move signals the company’s appetite for becoming a broader mobility-and-delivery platform rather than just a transport app.

Uber’s CEO Weighs In

When asked during the podcast what advice he would give to young entrepreneurs venturing into mobility, delivery, or quick commerce, Khosrowshahi quipped: “Don’t build anything like Uber because we’ll kick your ass.”

Kamath, with a touch of wit, replied: “You can buy us later.”

The lighthearted exchange underscored the competitive, often cutthroat, nature of India’s startup ecosystem. Behind the jokes lies a serious reality: India’s mobility market is undergoing a transformation, and Rapido has positioned itself as a formidable contender in this high-stakes race.

What This Means for India’s Mobility Market

Uber’s acknowledgment of Rapido as its fiercest rival marks a new chapter in India’s ride-hailing story. For years, Ola was seen as the only homegrown counterweight to Uber. But with Ola diversifying into EVs, fintech, and even overseas bets, Rapido has steadily taken over the space Ola once dominated.

As Rapido scales further—despite regulatory uncertainty and the challenge of burning cash—it is rewriting the rules of the market. For Indian commuters, this heightened competition could mean more choices, better prices, and faster innovation.

But the big question remains: Can Rapido sustain its breakneck growth and eventually build a path to profitability? Or will the weight of expansion pull it down, much like some of its predecessors?

For now, one thing is clear: in the eyes of Uber, Rapido isn’t just another startup—it’s the rival to beat in India.