Why Uber and Rapido are struggling in India? - Indian Startups News 308

https://finanjo.com/download - Download Finanjo here 00:00 - Introduction 01:01 - Uber and Rapido's future? 05:47 - Zepto IPO 07:50 - Quick News 08:35 - Funding News In this episode of Backstage with Millionaires, we break down the biggest stories shaping India's startup ecosystem — from Uber and Rapido's desperate pivot to survival, to Zepto's bold bet on going public at the worst possible time. Uber & Rapido: When Your Core Business Stops Growing Uber India posted just 2% revenue growth in FY25 — from ₹3,762 crore to ₹3,849 crore. Rapido's ride-hailing revenue actually declined. After a decade of fighting regulations, driver strikes, and cut-throat competition, neither company has turned a profit from ride-hailing. The hard truth? The market for app-based cab-hailing in India was always limited to roughly 30–40 million users — India's consuming class — and that ceiling was hit years ago. So what do you do when your core business plateaus? You sell more to the customers you already have. Uber launched Shuttle — a bus service now operating across Kolkata, Delhi, Hyderabad, and Mumbai — unlocking fundamentally better unit economics through fixed routes and bulk capacity. Rapido went even further, integrating flights, hotels, trains, and intercity buses into its app, while also launching Ownly, its food delivery service. The genius? Bike-taxi demand peaks during commutes; food delivery peaks at mealtimes. The same driver can serve both — maximising utilisation and keeping delivery costs as low as ₹30 flat. The result: Rapido's delivery business became its single largest revenue stream in FY25 at ₹340 crore. Rapido is no longer a ride-hailing company. It's quietly becoming a logistics giant. Zepto's IPO: Lifeline or Bold Move? Zepto has received SEBI's in-principle approval for its IPO — and the timing raises serious questions. The Indian stock market is down nearly 10%, Blinkit and Swiggy Instamart's share prices have cratered, and even PhonePe has postponed its IPO plans. So why is Zepto pushing ahead? Because it has to. This is a primary raise, meaning the money goes directly into the company's coffers. With Blinkit and Swiggy sitting on nearly $2 billion in cash each, and Amazon, Flipkart, and JioMart entering the quick commerce space, Zepto needs a serious war chest just to stay competitive. The IPO isn't a celebration — it may be a survival move. The silver lining: Zepto has rapidly cut its losses, from over ₹90 per order six months ago to ₹42–46 per order today. If all goes to plan, Zepto could list by end of June 2026 — making it one of India's fastest startups ever to go public. Also in this episode: Rebel Foods shuts down QuickiES amid high cash burn, CRED revamps Kuvera with AI-powered investing tools, and Ola Electric's in-house battery cell is production-ready. Funding Highlights: KreditBee raises $280M at a $1.5B valuation, Atlas raises $6M, RoshAi raises ₹22 crore, SatLeo Labs raises $2.2M, and Jaipur's own Helium Air raises $2M.