New Delhi: Rapido will use the cash on its books to expand beyond the 500 cities it currently serves, while extending into categories like three-wheelers and ride-share services as it deepens its mass-market playbook, a top company executive said.
The company believes that offering a value-for-money proposition will gain salience at a time when West Asia-war linked inflation forces consumers to reduce spending, co-founder Aravind Sanka said.
The Bengaluru-based raised $240 million in May in an investment round led by Prosus, intensifying competition with Uber that pumped ₹3,000 crore into its India operations in FY26 to defend market share against a fast-growing Rapido.
“We are going very deep in India, not just talking about the top 50-80 cities but we believe the market is there even for a smaller market. So, that is one big investment that we are doing and which we will continue doing in the next 1-2 years as well on going deeper into the country,” Sanka told Mint on the sidelines of an event in New Delhi.
Rapido currently offers services such as bike taxis, cabs, and parcel deliveries.
“It is also about expanding categories. We launched e-rickshaws. So, what we see is there are markets where there is very high e-rickshaws penetration and we were not utilizing those vehicles,” he added.
The company’s presence across the country has increased from 100 in December 2024 to around 500 cities as of May, with Sanka emphasizing that the company will continue on its aggressive expansion path.
Rapido’s and investment offensive comes after Uber bulked up its cash position in India. Uber pumped nearly ₹3,000 crore into its India unit to take on the challenge from Rapido, which entered the current fiscal year with a stronger cash position and has rapidly gained market share.
“This is a competitive market, but it’s competitive because of the potential that we see here. One of the fastest growing segments here in India is the two-wheeler segment, and today it is not profitable, but it shouldn’t be based on the growth that we see,” Uber global chief executive Dara Khosrowshahi told Mint earlier in an interview.
Doubling down on the mass market playbook is Rapido’s best bet to take on Uber in winning more incremental growth in the Indian market, according to experts.
“Deepening play in the country makes sense given their brand positioning. Tier 2 /3 is a white space. Premiumzation play won’t be feasible yet with their brand perception,” Subhabrata Sengupta, partner at Avalon Consulting, said.
Rapido, which is eyeing an initial public offering, saw its losses shrink from ₹371 crore in FY24 to ₹258 crore in FY25, according to data from the ministry of corporate affairs. Losses at Uber’s India unit surged from ₹89 crore in FY24 to ₹1,511 crore in FY25.
While Rapido had mainly built its business initially around bike taxis, it has expanded into the cab segment mainly at the expense of home-grown Cabs. Industry estimates suggest that Ola’s market share in the cab business has dwindled to 20-25% as of last year from 40-45% in 2023. Uber’s share has remained at about 45% while Rapido increased its share to over 20% last year.
Sanka noted that West Asia-linked inflation in fuel prices and commodities is expected to pinch the consumer’s pockets, potentially aiding its mass-market playbook along with many people signing up as drivers on its platform to supplement their earnings.
“You will always look for an alternative which is affordable compared to other alternatives. So, I think that is what we are seeing, both from the consumer side and also the captain side,” Sanka added.
