Uber chief executive Dara Khosrowshahi has said that Bengaluru-based Rapido, and not Ola, is now the company’s toughest rival in India, signalling a major shift in the country’s $13 billion ride-hailing market. “Ola used to be our main competition, now the tougher competition in India is Rapido,” Khosrowshahi said in a teaser clip of his full interview on Zerodha co-founder Nikhil Kamath’s podcast People by WTF. The remark marks a notable change in the competitive landscape. For years, Uber and Ola were seen as the two giants battling for dominance. But Rapido, founded in 2015 and best known for its bike taxis, has steadily gained ground with a focus on affordability and smaller cities.
Rapido currently operates in more than 100 cities and has expanded beyond bike taxis into auto rickshaws, cabs, parcel delivery, and third-party logistics. The company has built a strong base among price-conscious users, particularly in tier two and tier three cities, which analysts say helped it rise quickly as India emerged from the pandemic.
Just days before Khosrowshahi’s remarks, Rapido faced a setback when the Central Consumer Protection Authority (CCPA), India’s top consumer watchdog, imposed a Rs 10 lakh penalty on the startup for alleged misleading and unfair trade practices. Despite the scrutiny, Rapido is continuing to diversify. Earlier this month, the company began testing a food delivery service called Ownly in Bengaluru. The service, launched under a subsidiary named Ctrlx Technologies, is currently available in select neighbourhoods including Koramangala, Tavarekere, Madiwala, HSR Layout and Byrasandra, as reported by TechCrunch.
Rapido’s entry into food delivery brings it into direct competition with Swiggy and Zomato as well. According to The Mint, Swiggy has already warned shareholders that it may re-evaluate its investment because of “a potential conflict of interest” as Rapido expands into the same market.
Ownly’s strategy is built around affordability. Instead of charging restaurants commissions of up to 30 per cent like its rivals, Rapido reportedly offers a fixed fee per order. This allows the platform to sell meals at around 15 per cent cheaper than Swiggy or Zomato. To keep costs low, Rapido also plans to restrict delivery zones to nearby restaurants and use its vast vehicle fleet for operations.
The company is estimated to have access to about 10 million vehicles nationwide, including five to six million two-wheelers. This fleet is already used for its taxi and courier services and could give Ownly an edge in scaling quickly. Rapido has also handled deliveries for Swiggy in the past, giving it valuable insights into customer preferences and demand patterns.
– Ends