Now Reading: Uber-Rapido India merger talks collapsed over control: ET
-
01
Uber-Rapido India merger talks collapsed over control: ET
Uber and Rapido held talks in May to combine their India ride-hailing operations, but the deal fell apart after both sides refused to give up control, sources told ET. Uber proposed merging…
The Story in Brief
Uber and Rapido held talks in May to combine their India ride-hailing operations, but the deal fell apart after both sides refused to give up control, sources told ET. Uber proposed merging the businesses and letting Rapido run the combined entity. Rapido countered with an offer to acquire Uber’s India business, leaving Uber a minority stake. Uber declined as it sees India’s mobility market as strategic and won’t exit.
Separately, Honasa Consumer, parent of Mamaearth, reported a record quarterly profit of Rs 90 crore in Q1, up 116% year-on-year. Revenue rose 27% to Rs 756 crore. The company said its focus categories grew over 35%, with Derma Co crossing Rs 1,000 crore in annualised net sales.
The Indian Opinion
The narrative that Uber is retreating from India or that Rapido has the upper hand is overblown. Uber sold Uber Eats but refused to exit mobility, showing it will only cede ground on its own terms. Rapido’s cash-and-stock offer was effectively a takeover, not a merger. Both firms burn cash fighting for riders and drivers. The real test is whether Rapido’s aggressive four-wheeler push forces Uber to change its calculus or triggers another round of talks.
Sources (2): economictimes.indiatimes.com, economictimes.indiatimes.com (2)
This story was synthesised by AI from the 2 sources linked above.
