Uber, Rapido Held Talks To Combine India Operations, Says Report; Rapido Denies

Ride-hailing majors Uber and Rapido reportedly held talks in May to combine their India operations, but the discussions broke down over structure of the proposed deal.

According to an ET report, the talks took place during Uber CEO Dara Khosrowshahi’s India visit, with the US-based ride-hailing major proposing to bring the two businesses together under Rapido’s management. 

During the visit, Khosrowshahi met government officials, business partners, and Uber employees. He also met Rapido cofounder and CEO Aravind Sanka and other senior executives as the two companies explored a potential transaction. 

Rapido subsequently made a counterproposal to acquire Uber’s India operations through a cash-and-stock transaction, with Uber retaining a minority stake in the Bengaluru-based startup, according to the report. 

However, the proposal was not acceptable to Uber, which was unwilling to exit India or cede control of its operations. 

“Uber was looking at a combination, but Rapido’s proposal was closer to an acquisition of Uber’s India business,” ET quoted a source as saying. 

The talks eventually collapsed without an agreement.

Rapido denied the report in response to Inc42’s queries, saying, “There is no truth to the speculation. Rapido has no such plans and remains focused on independently building and scaling its mobility business in India.”

Uber, meanwhile, declined to comment, saying, “We do not comment on market speculation or private conversations with industry participants.”

The development comes amid Uber’s efforts to expand its share of India’s two-wheeler mobility market, which Rapido currently dominates.

Earlier this week, Uber announced the expansion of Uber Bike to 100 more cities, taking its overall footprint in India to more than 220 cities. The new markets span 18 states and one Union territory and include Jammu, Tirunelveli, Silchar, and Jamnagar.

The expansion is expected to take Uber deeper into smaller cities and intensify its competition with Rapido, particularly in the bike-taxi segment.

Rapido accounts for nearly half of India’s ride-hailing volumes, according to industry estimates. Its share of the two-wheeler segment is estimated at 60%-75%, while it commands an estimated 20%-30% share of the four-wheeler cab segment.

The startup also strengthened its war chest in May by raising $240 Mn in primary capital in a funding round led by existing investor Prosus. WestBridge Capital, Accel, and other investors also participated in the round.

The funding was part of a broader $730 Mn primary-and-secondary transaction that valued Rapido at $3 Bn on a post-money basis.

Rapido plans to use the fresh capital to enter new markets, deepen its presence in existing ones, expand its driver network, and invest in technology and hiring.

India’s Crowded Ride-Hailing Market 

The reported talks came as competition in India’s ride-hailing market intensifies, with established platforms and a growing number of new entrants competing for a share of a rapidly expanding market.

India’s ride-hailing services market is estimated at $2.9 Bn in 2026 and is projected to reach $11 Bn by 2033, growing at a CAGR of 20.7%.

The opportunity is attracting companies beyond traditional ride-hailing platforms. Automakers are increasingly moving into mobility services, with VinFast-backed Green SM entering India earlier this year with an all-electric ride-hailing service. Bharat Taxi and newer platforms such as Trevel and Plush Miles are also seeking to establish a foothold.

Many of these entrants are attempting to differentiate themselves through EV fleets, lower commissions, and driver-focused business models, increasing pressure on incumbents such as Uber, Ola, and Rapido. 

As competition intensifies, the battle for market share is increasingly centred on driver retention, fleet availability, fares, and unit economics. Against this backdrop, a combination of Uber and Rapido’s India operations could have significantly altered the competitive dynamics of the country’s ride-hailing market. 

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