According to Uber CEO Dara Khosrowshahi, Rapido has surpassed Ola in the category and is now the company’s fiercest rival in India. “Ola used to be our biggest rival. Rapido is, in my opinion, the more formidable rival in India right now. They aggressively entered the two-wheeler and three-wheeler markets using a subscription model with no commission. really resilient as well.
In his August 24 podcast, he told Zerodha co-founder Nikhil Kamath, “Ola is now kind of a distant third.” According to Khosrowshahi, one of Uber’s most significant markets is India.
Uber’s Market Share and Growth in India
With more than 1.4 million drivers of automobiles, two-wheelers, three-wheelers, and other vehicles, the nation is currently the third-largest destination in the world for the firm in terms of journeys. According to Khosrowshahi, Uber needs to win in India not just today but also in ten years.
Rapido’s Financial Sustainability Concerns
Regarding Rapido’s strategy, Khosrowshahi claimed that it gained early popularity because its subscription model allowed drivers to keep more of their profits. However, he added that Rapido was “not making money” and that its ability to expand financially will be put to the test. He declared, “We have a great deal of respect for them, and we plan to compete really hard.”
Uber’s Strategy for India’s Ride-Hailing Market
The CEO of Uber also discussed the rapid commerce and mobility industry in general and cautioned entrepreneurs against overestimating market size. Successful businesses always adjust. Build there and grow gradually if there is a product market fit in a specific niche. He stated that the total addressable markets are for fundraising decks rather than company development.
Uber views itself as a “local operating system” for daily life, covering rides, meals, groceries, and retail deliveries, according to Khosrowshahi, the former CEO of Expedia. In 2020, Uber Eats was sold to Zomato in India, giving Uber a share that was later sold. “We aren’t an investment firm. When asked about leaving Zomato, he responded, “I am capable of creating operational businesses and seeing them grow over time.”
Autonomous Vehicles Inevitable but Still Long Way to Go
Autonomous vehicles are inevitable, but they are still years away from being widely used in India, according to Khosrowshahi. Even in mature markets, autonomous car drivers are safer, but they cost a lot more. It will take a long time for autonomy to arrive in India.
Focus on Long-Term Competition
He stated, “I believe we’re looking at a 20-year horizon.” Regarding leadership, Khosrowshahi stated that while he has a natural collaborative style, he has learnt to transition to “wartime decision-making” when necessary. “Sometimes collaboration doesn’t help,” he remarked, recalling Uber’s epidemic layoffs. Here’s what we’re going to do, you must say. My team gives me credit when I say, “We’re going this way,” because they can tell that I’m paying attention most of the time.
Challenges Ahead for Rapido and Ola
Khosrowshahi went on to say that he attempts to keep a disruptor mentality despite Uber’s size. “I notice our flaws a lot more than our successes. We want to behave like a startup behind these confines. Outside, we must acknowledge that we are a large organisation, and that entails accountability,” he stated.
Quick
Shots
•Dara Khosrowshahi says Rapido has
overtaken Ola as Uber’s biggest rival in India.
•Ola now a “distant third” in
competition.
•Rapido’s strength: subscription
model, zero commission, strong presence in 2W & 3W segments.
•India is Uber’s 3rd largest market
globally by journeys.
What does it take to turn a tough beginning into a big success? Dara Khosrowshahi’s life shows us how it’s done. From escaping political troubles as a young refugee to leading Expedia to big success and later stepping in as Uber’s CEO, Dara Khosrowshahi’s story is full of strength, smart choices, and brave leadership. Since he became the CEO of Uber in 2017, he has worked smartly to improve the company’s image, fix its problems, and build an evergreen future.
This article will share an inside look at Dara’s early life, his education, his career journey, and how he became a leader of a global tech company.
Dara Khosrowshahi was born on May 28, 1969, in Tehran, Iran, into a wealthy and well-established family. His family owned the Alborz Investment Company, a successful conglomerate with diverse interests in industries like chemicals, food, distribution, and pharmaceuticals, one of the largest private businesses in Iran at the time.
However, their lives changed dramatically during the Iranian Revolution of 1978–79. As political unrest intensified and the regime became hostile toward wealthy business owners, Dara’s family was forced to flee the country.
At just 9 years old, Dara arrived in the United States as a refugee with his parents and two brothers. The family initially lived with relatives before slowly rebuilding their lives from scratch.
Despite these early challenges, Dara adapted quickly to his new surroundings. Dara completed his high school education at Hackley School in New York and later earned a bachelor’s degree in electrical engineering from Brown University in 1991.
Dara Khosrowshahi – Family
Dara’s first marriage was to Kathleen Grant, which lasted until 2009. Together, they have two children: a daughter named Chloe and a son named Alex. Dara Khosrowshahi is currently married to Sydney Shapiro, a former preschool teacher and actress. The couple tied the knot on December 12, 2012, in Las Vegas. They have twin sons named Hayes Epic and Hugo Gubrit, born in 2013, born in 2013.
Dara Khosrowshahi – Career
Dara Khosrowshahi began his professional journey in 1991 at Allen & Company, where he worked as an analyst. The job came with some great benefits after his first year. Dara received a $20,000 bonus and an all-expenses-paid African safari, according to The New Yorker.
It was also where he met media mogul Barry Diller, who quickly recognized his potential and began mentoring him for future leadership. Under his leadership, Expedia’s annual revenue has grown from $2.1 billion in 2005 to $8.7 billion in 2016.
Dara worked at Allen & Company for seven years before joining Barry Diller’s USA Networks (later IAC) in 1998. There, he climbed the ranks and eventually became the CEO of Expedia in 2005.
In 2005, following IAC’s acquisition of Expedia, Khosrowshahi was appointed CFO of Expedia Inc. Under his leadership, Expedia transformed into one of the world’s largest online travel companies. He spearheaded strategic acquisitions, including Travelocity for $280 million in 2015 , Orbitz for $1.6 billion , and HomeAway for $3.9 billion.
In August 2017, Khosrowshahi faced a career-defining moment when he was appointed CEO of Uber, succeeding co-founder Travis Kalanick amid a period of intense scrutiny and internal turmoil. Initially hesitant, Khosrowshahi was persuaded to take the role, emphasizing the need for cultural transformation within the company. He introduced new corporate values focusing on ethical practices and customer obsession, replacing the previous aggressive culture.
Khosrowshahi was identified as the highest-paid CEO in the S&P 500 in 2015. The average CEO at America’s largest companies earned $10.8 million. According to the report, Khosrowshahi received $94.6 million, which is the highest compensation among all 341 companies surveyed.
Dara Khosrowshahi – Uber
When Dara Khosrowshahi took over as CEO in 2017, Uber was in crisis mode, facing internal scandals, regulatory pushback, and an unstable public image. One of his first major goals was to stabilize the company and lead it to a successful Initial Public Offering (IPO).
In May 2019, under Dara’s leadership, Uber went public with a valuation of around $82 billion, raising $8.1 billion in one of the most anticipated IPOs in tech history. While the IPO faced criticism for an initial drop in share price, Khosrowshahi was credited with guiding Uber through the process with transparency and long-term focus.
Under Khosrowshahi’s guidance, Uber achieved its first annual operating profit in 2023, reporting a $1.1 billion operating profit and a $1.9 billion net profit, a significant turnaround from the $1.8 billion loss in 2022. This milestone marked a pivotal moment in Uber’s history, demonstrating its ability to generate sustainable, profitable growth at scale.
In 2023, he went undercover as an Uber driver for several months, completing around 100 trips under the alias “Dave K.” This experience provided him with firsthand insights into the challenges faced by drivers, leading to meaningful changes within the company.Since then, Uber has strengthened its business model, addressed regulatory challenges, and expanded its Eats and delivery services to new heights.
In May 2022, Khosrowshahi purchased 200,000 shares of Uber stock at an average price of $26.72, totaling approximately $5.34 million. Following this purchase, Khosrowshahi directly owned about 1.42 million shares of Uber. This move came shortly after he communicated to employees about the company’s strategic shift towards prioritizing free cash flow and cost efficiency.
Dara Khosrowshahi – Philanthropy
As a former refugee from Iran, Khosrowshahi has been a vocal advocate for displaced communities. In 2021, under his leadership, Uber increased its donation to $1 million to support Afghan refugee resettlement programs. These funds were directed to organizations like the International Rescue Committee and Women for Afghan Women, providing essential services such as transportation, food deliveries, and medical care to Afghan families.
In 2022, he hosted Filippo Grandi, the United Nations High Commissioner for Refugees, to explore partnerships aimed at delivering emergency supplies to displaced families.
Dara Khosrowshahi – Controversies
In a 2019 interview with Axios on HBO, Khosrowshahi stated the murder of journalist Jamal Khashoggi as a “mistake” that could be forgiven, comparing it to an accident involving one of Uber’s self-driving cars. The remarks sparked widespread backlash, especially given Saudi Arabia’s significant investment in Uber. Khosrowshahi later retracted his statement and issued a public apology.
In addition, in May 2024, billionaire investor Bill Ackman criticized Uber after a New York City taxi driver claimed the company withheld passenger tips. Ackman’s own experience corroborated the driver’s claim, leading him to demand that Uber rectify the issue. Uber acknowledged the problem, attributing it to a technical glitch, and promised improvements.
Dara Khosrowshahi – Awards and Recognition
2013 – Ernst & Young Pacific Northwest Entrepreneur of the Year
2024 – Fortune’s 100 Most Powerful People in Business
When did Dara Khosrowshahi become the CEO of Uber?
Dara Khosrowshahi became the CEO of Uber in August 2017, succeeding co-founder Travis Kalanick.
What is Dara Khosrowshahi’s educational background?
Dara Khosrowshahi graduated with a bachelor’s degree in electrical and electronics engineering from Brown University in 1991. He also attended the Hackley School for his secondary education.
Does Dara Khosrowshahi own stock in Uber?
Yes, Khosrowshahi directly owned about 1.42 million shares of Uber.
