Uber takes bike taxis to 100 more cities in India as Rapido rivalry intensifies
The expansion, spread across 18 states and one Union territory, will initially be driven by Uber Bike, the company’s two-wheeler offering. The new markets include Jammu, Tirunelveli, Silchar and Jamnagar, among others.
Ride-hailing giant Uber is set to launch bike-taxi services in 100 more Indian cities, further cementing its position in the growing two-wheeler mobility market. The expansion will extend Uber's national footprint to over 220 cities, highlighting the company's strategic shift towards smaller towns and beyond major metropolitan areas. The new cities, located in 18 states and one union territory, will initially operate under Uber Bike, the company's two-wheeler offering.
The aggressive expansion of Uber and its rival Rapido, the Bengaluru-based player with a presence in 400 cities, underscores the escalating competition in India's bike-taxi market. Both companies are racing to capture a larger share of the market by offering low-cost travel options in congested cities.
For Uber, the push into smaller cities provides an additional avenue to expand its India business beyond its focus on cars in large urban centers. Bike trips offer a cost-effective entry point for users who may not frequently utilize app-based cab services. Uber's director of consumer and growth in India and South Asia, Rishant Ghosh, emphasized the importance of reaching these underserved markets, stating that India's mobility demand extends well beyond the big metros.
The move also aims to create income opportunities for local drivers, many of whom already own two-wheelers. The push into the bike-taxi market comes as states grapple with regulations surrounding these services. The Motor Vehicle Aggregator Guidelines 2025 provide a framework for permitting bike-taxi operations, although implementation varies by individual states.
Rapido currently holds nearly 60% market share in the bike-taxi space, with Uber and Ola accounting for the remainder. In a recent interview, Uber CEO Dara Khosrowshahi underscored the company's commitment to bike taxis, noting their affordability and complementarity to mass transit. He emphasized the company's intention to collaborate with local authorities on bike-taxi regulations, aiming for a win-win solution that benefits both policymakers and users.
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