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Economic Times
2d
201
Image Credit: Economic Times
Ride-hailing on a rollercoaster ride with sharp twists, turns
- India's ride-hailing sector has transformed over the past year, with Rapido gaining ground while BluSmart and Ola face challenges.
- Rapido, backed by WestBridge Capital, has captured a 20% market share in the four-wheeler segment, disrupting the Uber-Ola dominance.
- Uber still holds about 50% share in the segment, but Ola's share is declining, and a potential acquisition of BluSmart by Uber suggests industry consolidation.
- Rapido, with over $1 billion in GMV, highlights the struggle for profitability in the ride-sharing market in India.
- The central government's entry with Sahkar Taxi app is expected to intensify competition in the sector.
- Ride-sharing businesses globally have succeeded with asset-light models, contrasting with asset-heavy models like BluSmart's slow expansion.
- Uber and Ola initially ran fleet companies but faced challenges, leading to a shift towards asset-light strategies.
- BluSmart's clean fleet posed a challenge to Uber and Ola, prompting Uber to invest in fleet operators like Everest Fleet and Moove.
- Uber divested UberEats India, while Ola diversified into food delivery and manufacturing EV two-wheelers, led by Bhavish Aggarwal.
- Post-Covid, Rapido expanded into four-wheeler and three-wheeler segments, while Namma Yatri disrupted the three-wheeler space with a fixed fee model.
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