Daijiworld Media Network - New Delhi
New Delhi, Jun 7: Ola Consumer has achieved profitability and turned free cash-flow positive, strengthening its position in India’s highly competitive ride-hailing sector while rivals continue to spend heavily to expand market share, according to company disclosures and industry estimates.
The company reported operating revenue of around Rs 1,171 crore in FY25, surpassing Rapido’s Rs 934 crore. Industry estimates indicate that Ola’s advantage is even more pronounced on a net revenue basis after accounting for customer discounts and driver incentives.
Sources familiar with the developments said Ola generated an estimated Rs 250-300 crore in net revenue during the latest quarter, compared to around Rs 40-45 crore for Rapido and Rs 35-40 crore for Uber.
The performance reflects Ola’s strategy over the past two years of focusing on profitability, monetisation and operational efficiency rather than relying on aggressive discount-driven growth.
“Short-term growth driven by discounts and incentives is difficult to sustain. Revenue quality and the ability to retain value from each transaction are more meaningful indicators of business strength,” a person familiar with the matter said.
Industry executives and investors estimate that Rapido is currently spending between Rs 80 crore and Rs 100 crore per month to support expansion and gain market share. Uber’s India ride-hailing business is also estimated to be incurring monthly losses exceeding Rs 100 crore.
Regulatory filings showed Uber India’s ride-hailing unit reported revenue of about Rs 88 crore in FY25 while posting a segment loss of approximately Rs 1,401 crore.
Ola, meanwhile, has implemented a series of cost-cutting and efficiency measures, including workforce rationalisation, operational consolidation and increased automation. According to sources, these initiatives helped the company become free cash-flow positive in the fourth quarter of FY26 and achieve EBITDA breakeven in FY27.
The contrasting financial performances come at a time when investors are increasingly prioritising profitability, cash generation and sustainable business models over market-share expansion. While competitors continue to deploy significant capital to fuel growth, Ola has focused on improving unit economics and revenue realisation, resulting in stronger profitability and cash-flow metrics.