Ride-hailing company Uber is expanding into 100 more Indian cities, pushing deeper into smaller towns at a time when competition in India's two-wheeler mobility market is intensifying. The expansion will widen its national footprint to more than 220 cities.
Operations in the new cities, 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.
The move comes amid a broader battle for dominance in India's bike-taxi market, where US-headquartered Uber has been competing with Bengaluru-based Rapido, which has a presence in 400 cities across India. The two companies have been expanding their two-wheeler services aggressively, particularly beyond the largest metros, as they seek to build scale in a segment that offers relatively low fares and faster travel through congested cities.
Beyond 4-wheelers
For Uber, the smaller-city push gives it another avenue to expand its India business beyond its traditional focus on cars in large urban centres. Bike trips can also serve as a lower-cost entry point for users who may not regularly use app-based cabs.
“India’s mobility demand extends well beyond the big metros, and we are taking Uber into places where people are looking for affordable ways to get around,” Rishant Ghosh, director, consumer & growth, Uber India and South Asia, said in a press release.
Uber said the expansion is also intended to create earning opportunities for local drivers, many of whom already own two-wheelers.
The expansion comes as states grapple with regulations around bike taxis. The Motor Vehicle Aggregator Guidelines 2025 provide a framework for states to permit bike-taxi operations, although implementation and rules will depend on individual states.
In the bike-taxi space, Rapido still commands almost 60% market share, according to industry executives, with Uber and Ola holding the rest.
In a May interview with ET , Uber CEO Dara Khosrowshahi, who was on a visit to India, had said that the company wanted a dialogue with local authorities about bike taxis. "There’s no question that bike taxis are making transportation more affordable for a greater percentage of the population and actually complement mass transit. A quarter of our bike taxi trips either start or end at mass transit points," he had said.
"We’re investing now in beyond just being a car-hailing service. We think that bike taxis should be a part of the entire transit ecosystem and are a much more affordable way for earners to come to the platform and start earning. We’re hoping that we can find a win-win solution, where policymakers make sure they get what they need in terms of rules and regulations being followed," Khosrowshahi had said.
