Sources: Uber and Rapido discussed merging their India ride-hailing operations in May; talks collapsed after disagreements over the proposed deal's structure (The Economic Times)

Uber, the ride-hailing giant, is expanding its two-wheeler mobility services to 100 more Indian cities, marking a significant push into smaller towns. This move brings Uber's national footprint to over 220 cities, following a broader competition in India's bike-taxi market. The new cities, which span 18 states and one union territory, will initially operate under Uber Bike, the company's two-wheeler service.

The expansion comes as Uber competes with Rapido, a Bengaluru-based rival with a presence in 400 cities. Both companies have been aggressively expanding their offerings beyond major metros, aiming to build scale in the low-fare, fast-travel segment that two-wheelers provide in congested cities.

For Uber, this strategic move offers a way to expand its India business beyond traditional car-focused cities. Two-wheeler trips serve as an affordable entry point for users who may not frequently use app-based cabs. Rishant Ghosh, director of consumer and growth at Uber India and South Asia, emphasized the company's focus on bringing affordable transportation to places where people need it.

The expansion also creates earning opportunities for local drivers, many of whom already own two-wheelers. India's mobility demand extends beyond major metros, and Uber sees this push into smaller cities as a way to meet this diverse demand.

The move comes amid regulatory challenges, as states grapple with laws around bike-taxis. The Motor Vehicle Aggregator Guidelines 2025 provide a framework for permitting bike-taxi operations, with implementation varying by state. Rapido currently holds nearly 60% market share in the bike-taxis space, followed by Uber and Ola.

In May, Uber CEO Dara Khosrowshahi, during a visit to India, expressed the company's support for bike taxis, viewing them as a complement to mass transit. Khosrowshahi emphasized Uber's commitment to integrating bike taxis into the broader transit ecosystem, offering an affordable alternative for users to start earning through the platform.