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Uber India made Rs 807 Cr from ride-hailing in FY24

EntrackrEntrackr · 7m ago
Uber India made Rs 807 Cr from ride-hailing in FY24
Medial

Online mobility platform Uber India recorded a 41.1% year-on-year surge in revenue, which surpassed Rs 3,700 crore in the fiscal year ending March 2024. However, despite this growth, the company's losses shrank by 71.4% during the same period. According to the consolidated financial statements of Uber India System Private Limited, its revenue from operations increased to Rs 3,762 crore in FY24 from Rs 2,666 crore in FY23. Moving to revenue recognition, collection from Uber rides (ride-hailing) accounted for 21.45% of the total operating revenue which increased by 18.9% to Rs 807 crore in FY24 from Rs 679 crore in FY23. The remaining income came from Uber BV, generated through engineering support services, back-office, and other support services, billed under a cost-plus model. The company also added Rs 99 crore from interest on current investment and other miscellaneous sources (non-operating) which tallied the overall revenue to Rs 3,860 crore in FY24 from Rs 2,744 crore in FY23. According to its consolidated statements, Uber India spent 67.6% of its overall cost on employee benefits. This cost grew by 29.4% to Rs 2,690 crore in FY24, compared to Rs 2,079 crore in FY23. Its cost of consumables amounted to Rs 657 crore in the previous fiscal year (FY24). Legal/professional fees, advertising, rent, repairs, safety security, and other overheads took the total expenditure up by 26.4% to Rs 3,977 crore in FY24 from Rs 3,146 crore in FY23. Uber India’s over 40% growth and controlled expenditure led its net losses to shrink by 71.4% to Rs 89 crore in FY24, compared to Rs 311 crore in FY23. On a unit level, it spent Rs 1.06 to earn a rupee in FY24. While continuing to play out like a mid-tier software firm with low margins and a division that is a drag (the cab services), Uber India seems the closest it will ever get to profitability, especially if it acquires Blusmart mobility, as some reports will have it. Even without that, for most lay observers, it's a wonder that the firm continues to make losses, when we consider that its best in terms of service quality and ‘partner morale’ or driver satisfaction, is well behind it. Granted, the firm has had to virtually create and make up a business model as it has gone along, but considering the not insignificant role it plays in many cities in India as a service provider, the numbers are underwhelming. Selling software services to its parent has been a good fix to cover up for what has surely been a very rough ride in India so far, but the bigger tragedy is that very few people or customers will sympathise. It is frankly incomprehensible that the firm has to struggle to make enough here, and get earn nothing but criticism most of the time. As it completes a dozen years in India this year, one can only hope that the firm makes a breakthrough financially, morally and efficiency wise.

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Related News

Paytm Eyeing Foray Into Ride Hailing Space With Autorickshaw Offerings, To Challenge Ola, Uber

Inc42Inc42 · 1y ago
Paytm Eyeing Foray Into Ride Hailing Space With Autorickshaw Offerings, To Challenge Ola, Uber
Medial

Paytm, the fintech giant in India, is planning to enter the ride-hailing space by offering auto rickshaw booking services through its app. The service is currently being tested with select users and might expand to include cab bookings later on. Paytm aims to launch these ride-hailing services in tier 1 cities such as Delhi, Bengaluru, and Chennai. This move will challenge the dominance of Ola and Uber in the Indian ride-hailing market, which is already facing competition from emerging players like Rapido and BluSmart. Paytm's ride-hailing venture is facilitated by ONDC-backed Namma Yatri, which offers its services to driver partners through a subscription fee model.

Vanguard values Ola at $1.25 Bn

EntrackrEntrackr · 6m ago
Vanguard values Ola at $1.25 Bn
Medial

US-based asset management company Vanguard has marked down Ola’s valuation to $1.25 billion, according to a SEC filing in the US. This represents more than an 80% drop from its peak valuation of $7.3 billion in 2021. In February 2024, Vanguard had valued the Bhavish Aggarwal-led company at less than $2 billion ($1.88 billion) for the first time. However, it later revalued the company at around $2 billion in November last year. This development comes as Ola continues its push toward a public listing, even as it loses ground in the ride-hailing space (cabs, autos, and bikes). Rapido has emerged as the market leader, followed by Uber, with Ola now relegated to third place. In August last year, CEO Bhavish Aggarwal announced that Ola Cabs would be rebranded as Ola Consumer, consolidating its financial services, cloud kitchens, and electric logistics under one umbrella. Although Ola converted into a public entity in November 2024 and has been evaluating IPO options since November last year, it has yet to make concrete moves toward a listing. Analysts suggest that Ola is likely to delay its IPO plans by at least six months, citing unfavorable market conditions—especially in light of the declining market cap and share price of Ola Electric. During FY24, Ola’s operating revenue declined by 5.5% to Rs 2,012 crore, down from Rs 2,128 crore in FY23. However, the company narrowed its losses significantly to Rs 10 crore in FY24, compared to Rs 623 crore in the previous fiscal year. The Bengaluru-based firm also turned EBITDA profitable in FY24. Meanwhile, its rival Rapido reached unicorn status last year after raising $200 million at a valuation of $1.1 billion. The Swiggy-backed company also surpassed Ola in terms of combined daily rides across bike taxis, autos, and cabs in Q2 FY25. Despite losing market share, Ola’s ride-hailing business remained more than twice the size of Uber’s and 2.5 times that of Rapido in terms of revenue. In FY24, Ola’s ride-hailing income stood at Rs 1,761 crore, compared to Uber’s Rs 807 crore from its mobility operations. Rapido reported Rs 648 crore in revenue for the same period, while managing to cut its losses by 45% to Rs 371 crore. While this valuation downgrade may not have a direct financial impact on Ola, it could weigh on internal morale—especially as the company weighs its public market debut.

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