The Indian core mobility business of Uber has been difficult time in the fiscal year ending in March 2025. Based on the consolidated financial statements of the company, the ride-hailing segment of Uber India experienced a dramatic 4-fold growth in losses amounting to ₹1,407 crore. This economic recession came at a time when the company was comparatively steady with regard to gross revenue, leading to an increase in the disparity between what is happening in the market and the corresponding net income.

This sudden increase in losses is indicative of an aggressive approach to spending that is intended to keep the market share up as competition mounts and industry dynamics evolve.

Stagnant gross and operating revenue

The most shocking revelation of the FY25 financial report is the disproportion of gross and net revenue. The gross revenue of Uber India, the amount of commissions obtained during rides without taking into consideration incentives, did not change significantly, as the figure was ₹2,604 crore. The ride-hailing revenues plummeted by an astonishing margin of 89% to only ₹88 crore in FY25, which is against ₹807 crore in the last fiscal year.

This loss of net revenue can be directly explained by the accounting policy used by Uber, according to which the incentives to drivers and discounts provided to riders are offset on the top line. Uber has grown its expenditure on these incentives by 33% in FY25 to reach ₹2,516 crore. The company has successfully reduced its mobility top line to a fraction of its gross commission value by heavily subsidizing rides to entice drivers and commuters. This would be a defensive measure to counter competitors such as Rapido, which has recently changed to a zero-commission, flat-fee subscription model.

Uber India consolidated operating revenue recorded a slight increment of 2.3% with an overall revenue of ₹3,849 crore in FY25, even though it has been impacted by a massive blow to its ride-hailing revenue. This stability was mainly because of the support services segment of the company, and not its taxi business, which was facing the consumer market. The revenue growth was ₹3,664 crores in a year, compared to ₹2,936 crores last year (FY24) in the provision of engineering, back-office, and business support to its parent company (Uber BV) and other companies in the group.

This cost-plus pricing of the company’s internal services is a financial safety net for Uber in India. Although the local mobility business is still a major depreciation on the balance sheet, the revenue earned on international support services means that the entire organization will still record high total revenue. The company also earned ₹79 crore under the sources of non- operation, such as interests on current investments that added to its overall earnings of the year.

Competitive pressure and consolidated net loss

Uber India also had a consolidated net loss of ₹1,512 crore in FY25. This is a considerable contrast to FY24, when the company had been able to reduce its losses significantly to an amount of ₹89 crore. The reversion to the deep losses highlights the expensive nature of the business in the Indian mobility market, as customer loyalty is usually based on price and the availability of the vehicle. The rise in the number of promotional spending would imply that the price war in the Indian ride-hailing industry has entered a new, more costly phase.

The financial trend in Uber FY25 compares to that of some competitors. The difference in the revenue models notwithstanding, Rapido was able to minimise its net losses by more than 30% in the same period. The threat of competitors matching lower prices and increased driver payments has made Uber compromise its short-term profitability goal in favor of maintaining its user base and network of drivers.

Conclusion

The performance of Uber India in FY25 indicates the strategic shift to the mode of aggressive market defense at the cost of the bottom line. Though the revenue generated by the company’s support services offers a secure source of income through the global parent of the company, the main ride-hailing operation is already struggling with an enormous increase in losses.

The move to invest ₹2,516 crore in incentives shows the sheer pressure to keep up with the competitive world, which is still very sensitive to price. The main challenge that the company will face as it proceeds is to balance between the need to retain market leadership in the country and to develop a sustainable, profitable model of mobility operations in India.