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.
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•Dara Khosrowshahi says Rapido has •Ola now a “distant third” in •Rapido’s strength: subscription •India is Uber’s 3rd largest market |
