Ride-hailing giants Uber and Rapido reportedly explored combining their India businesses in May 2026. However, the talks ended after they proposed different ownership structures.
Uber wanted Rapido’s management to run the combined company while retaining an ownership interest. Rapido instead proposed buying Uber India with cash and shares, leaving Uber as a minority investor.
The discussions occurred during Uber chief executive Dara Khosrowshahi’s five-day India visit, which began on May 12. He also met Rapido co-founder and chief executive Aravind Sanka during the trip.
People familiar with the discussions told The Economic Times that Uber rejected Rapido’s counteroffer. The companies then stopped negotiations without reaching an agreement on ownership or control.
Rapido disputed the report. Its spokesperson said: “There is no truth to the speculation.” The spokesperson added that Rapido “has no such plans” and remains focused on growing independently. Uber declined to discuss market speculation or private industry conversations.
A combination would have brought bike taxis, auto-rickshaws and cabs onto one major platform. Rapido operates across more than 400 cities, while Uber serves more than 220 Indian cities.
Uber India Systems recorded Rs 2,604 crore in gross ride-hailing revenue during FY25. The figure stayed broadly unchanged from the previous year. Yet net ride-hailing revenue fell 89% to Rs 88 crore.
Driver incentives and discounts increased 33% to Rs 2,516 crore during the year. Uber deducts those payments from revenue under its accounting policy, reducing the mobility unit’s reported net revenue.
Uber India’s consolidated loss rose to Rs 1,512 crore from Rs 89 crore in FY24. Its ride-hailing segment lost Rs 1,407 crore, compared with Rs 330 crore one year earlier, according to Entrackr.
Rapido reported a different financial direction. Its FY25 operating revenue increased 44% to Rs 934 crore. Meanwhile, its net loss narrowed 30% to Rs 258 crore.
Rapido charges many drivers a flat subscription fee rather than taking a percentage of every fare. Drivers keep trip payments after paying the platform’s fixed charge.
Uber uses a commission-based system and supports demand through driver incentives and rider discounts. These different structures shape fares and driver earnings across India’s ride-hailing market.
Khosrowshahi identified Rapido as Uber’s toughest Indian competitor during a 2025 podcast. He said, “Ola used to be our main competition,” before naming Rapido as the stronger rival.
India ranks as Uber’s third-largest market by total trips. Khosrowshahi has also described the country as a market that Uber must win as demand expands.
Meanwhile, Uber has invested fresh money in its local unit. Uber B.V. injected Rs 2,921 crore into Uber India Systems during November 2025 and January 2026.
Rapido raised $240 million in primary funding in May 2026 at a $3 billion valuation. Prosus led the round, while WestBridge Capital and Accel also participated.
Both platforms also compete with Ola. Rapido has expanded beyond two-wheelers into auto-rickshaws and cabs across major cities.
Uber recently added bike-taxi services in 100 more cities. Meanwhile, Rapido says it remains focused on growth and is not pursuing an immediate public-listing timetable.