From premium services like Alyte and Uber Black to inclusive models like Rapido and government-backed cooperatives, the business of ride hailing apps is seeing high momentum. Not only is the segment attracting new players, it has diversified into subscription models, parcel delivery and long-distance travel as well, including motor homes.
Mahindra Logistics is the latest entrant into the premium mobility space with Alyte (formerly Meru Cabs), a tech-enabled cab service focused on high-end customer experience. Launched in Delhi-NCR this August, Alyte operates two service tiers—Alyte Privé, a fleet of electric Mahindra XUV400s offering airport transfers with professional chauffeurs, and Alyte Select, with sedans and SUVs for travel across six cities -—Mumbai, Delhi, Pune, Hyderabad, Bangalore, and Ahmedabad. Both categories boast a 98% fulfillment rate, and the company aims to double its mobility business in three years.
“In the mobility business, consistency defines credibility. With Alyte, we’re building a full-service, premium platform where every touchpoint, from booking to chauffeur service, reinforces trust,” Hemant Sikka, MD & CEO, Mahindra Logistics, told FE, adding that expansion will be accelerated within Delhi and other metro cities, supported by a significant increase in fleet capacity.
“The premium cab-hailing segment in India represents a market of Rs 2,000 crore across the top six cities and continues to expand at a strong pace year-on-year. Demand within this category has shown consistent double-digit growth, driven by rising expectations for trust, comfort, and premium mobility experiences in the urban mobility landscape,” added Sikka.
Experts also say the Indian ride-hailing market is at an important inflection point. “Total gross merchandise value (GMV) of the market has grown to approx $7 billion at a CAGR of 6% since 2022. Around 2.4 billion rides were completed in 2024 alone. The top three players account for 70-80% of the market by GMV,” said Rajat Mahajan, partner, Deloitte India.
Mahajan pointed out that three-wheelers (3Ws) remain the fastest-growing segment in terms of both volume and value — driven by affordability and last-mile connectivity. “In 3Ws, the last mile contributes to nearly 50% of total trips in many cities. However, there’s a white space for premiumisation in this segment. If operators can combine affordability with comfort and consistency, it will open up new demand pockets, especially in Tier 2 and Tier 3 towns.”
Deloitte’s insights also indicate that shared mobility players are introducing premium offerings and also reviving premium services that did not do well in the past. Customers are willing to pay more over standard rides when offered reduced cancellations, and other perks, reflecting in the average order value (AOV) increase of about 9% for premium rides and only about 3% in case of economy rides. Customers are also willing to pay 25-40% higher fee for an app-owned vehicle which is cleaner with a professional driver, resulting in premium offerings like Uber Black.
At the same time, homegrown players like Rapido are disrupting the market by widening access to shared mobility in non-metro regions. Originally a bike taxi platform, Rapido has modified into a comprehensive service with autos, cabs, parcel delivery, and even travel bookings via integration with Goibibo, redBus, and ConfirmTkt. Rapido’s SaaS model, launched 18 months back, replaces per-ride commissions with a fixed subscription fee, a move that empowers offline drivers to come online with better earnings and transparency.
“The goal is to make mobility economically empowering. In Tier 3 and 4 cities, our subscription model for drivers and parcel category is gaining momentum. The parcel category is live across 200 cities, growing 15-20% QoQ. This innovation lets us balance affordability for riders and income predictability for drivers,” said a company spokesperson. Rapido is investing in AI-powered safety and customer support systems, EV integration, and localised app experiences.
A Motilal Oswal 2025 report indicates that Rapido’s 31.8 million monthly active users now exceed Ola’s 28.6 million in the four-wheeler cab market. Uber leads in daily cab trips with 33.6 million, and completes around 840,000 daily cab trips, far ahead of Ola (460,000) and Rapido (320,000). Rapido dominates with 61% market share in bike taxis.
The app-based cab market is experiencing significant growth, with the global market projected to reach between $468.4 billion by 2033 and the Indian market expected to grow to $32.53 billion by 2030, according to Mordor Intelligence data.
While private companies innovate to capture market share, the Delhi government is preparing to launch the city’s first cooperative ride-hailing platform, inspired by the Sahkar Taxi model from Maharashtra. Unlike corporate-run platforms, this service will be owned by the drivers themselves and promise zero commission and transparent pricing. It is designed to give drivers more control and passengers a reliable, surge-free alternative. It’s also aligned with the Union Ministry of Cooperation’s plan to support worker-owned platforms nationwide.
Sustainability is also central to diversification strategies. Mahindra’s Alyte Privé operates fully electric vehicles, while Ola and Uber are piloting electric fleets and investing in charging infrastructure. Ola’s Futurefactory in Tamil Nadu is India’s largest two-wheeler EV plant, producing scooters aimed at city commuters.
Deloitte’s Rajat Mahajan believes EV integration will be central to long-term success. “EV adoption is being driven not just by environmental goals but by lower running costs and government incentives. Urban mobility platforms that integrate EVs effectively, along with robust driver support, will be better positioned to scale profitably.”
Beyond rides, mobility companies are looking to become integrated lifestyle platforms. Services like Uber, available across 125 cities in India, have added metro ticketing to its app and expanded long-distance travel via Uber Intercity and even Motorhome rentals for premium road trips. Uber’s foray into food delivery via Uber Eats in India met with limited success, while quick deliveries with Uber Courier and premium rides through Uber Black are add-on categories.
Tech-enabled mobility platform Wise Travel India (WTi Cabs), the country’s largest operator of Uber Black vehicles, plans to more than double its fleet of premium cars to over 2,000 by the end of 2025, and expand operations to Kolkata, Chennai, and Hyderabad. The partnership between Uber and WTi combines Uber’s digital ride-hailing platform with WTi’s fleet management capabilities to deliver premium transportation services across key Indian metros.
“Demand for Intercity and Motorhomes has been exceptional. In Tier 2 and 3 cities, everyday options like Uber Auto and Moto continue to grow rapidly, offering affordable and reliable mobility options for riders. Our focus remains on building inclusive, sustainable mobility solutions made for India,” said an Uber spokesperson.
The October-December festive season, a peak period for weddings and family travel, is a battleground for intercity offerings. Uber’s Intercity Motorhomes, a pilot programme offering luxury caravan-style rides for longer, intercity travel was launched in Delhi this year, and is now extended to Mumbai, Bangalore, and Pune, reflecting rising demand for comfort-first, flexible travel.
Shiva Shailendran, director, consumer growth, Uber India and South Asia, said, “Uber Intercity has become a preferred choice for riders who want dependable, comfortable, and easy travel between cities. The growing popularity of Intercity shows how people are embracing road travel for quick getaways, family visits, and business trips alike.”
However, some businesses like BluSmart, launched in 2019 with EV taxis in Delhi-NCR and Bengaluru, abruptly suspended operations this year following a regulatory probe and financial difficulties.