Uber has infused nearly ₹3,000 crore ($330 million) into its Indian subsidiary, Uber India Systems Pvt Ltd.
This massive capital injection comes as Uber shifts its primary defensive focus away from its long-time rival, Ola, to counter the rapid ascent of Rapido, which has now emerged as the largest ride-hailing platform in India by total volume of rides.
The Capital Infusion: A Two-Tranche Move
The investment from Uber’s Netherlands-based parent entity, Uber B.V., was executed through the allotment of 14.4 million equity shares:
- Tranche 1 (November 2025): ₹200 crore.
- Tranche 2 (January 2026): ₹2,721 crore.
- Total Valuation: The shares were issued at approximately ₹2,022.85 per share.
Why Uber is Pivoting to Fight Rapido
The ride-hailing landscape in India has undergone a structural shift over the last 12 months. Uber’s own CEO, Dara Khosrowshahi, recently acknowledged that Rapido is now their “most formidable” competitor.
1. The “Volume King” Displacement
While Uber still leads the high-margin 4-wheeler (cab) segment, Rapido has used its dominance in bikes and autos to capture the “mass market.”
- Market Share: Rapido now commands approximately 50% of India’s total ride-hailing market (across all categories), leaving Uber at ~40%.
- Monthly Active Users (MAUs): As of early 2026, Rapido has roughly 50 million MAUs on Android, significantly outpacing Uber’s 30 million.
2. The Revenue Gap
The investment is a “much-needed” lifeline according to analysts. In FY25, Uber India’s net revenue from ride-hailing reportedly plunged by 89% (to ₹88 crore from ₹807 crore), largely due to aggressive fare cuts and driver incentives aimed at stopping Rapido’s momentum.
3. The Subscription Model War
Rapido’s growth was fueled by a zero-commission subscription model for drivers, which forced Uber to react.
- Uber’s Response: Uber has introduced its own version in cities like Bengaluru and Delhi, charging drivers a flat daily fee of ₹120–₹140 instead of taking a 20-30% cut per ride. The new ₹3,000 Cr funding is expected to bankroll the losses incurred during this transition.
Uber’s 2026 Strategy: “Premium + Mass”
To justify this investment, Uber is pursuing a dual-track strategy in India: | Segment | Strategy | | :— | :— | | Premium (Uber Black) | Uber plans to double its Uber Black fleet by the end of 2026, targeting high-spending corporate and luxury travelers. | | Mass Market (Auto/Moto) | Using the new funds to subsidize fares in Tier-2 and Tier-3 cities where Rapido currently has a pricing advantage. | | Reliability Targets | Internal goals have been set to ensure 60% of booked rides are completed without driver cancellation—a metric where Rapido has historically struggled. |
Market Context
This move effectively signals the end of the traditional Uber-Ola duopoly. With Ola slipping to third place (25-30% share in cabs) and focusing heavily on its EV manufacturing business, the Indian mobility sector is now a high-stakes, two-player battle for “share of wallet” between the American giant and the Bengaluru-based disruptor.
