Sep 11: Rapido Rise in Rides, Agri-Food Revolution Needed, BYD In India

Apple unveiled the slimmest ever iPhone 17 Air and it seems like Samsung was just waiting on the sidelines for the big day. They’ve come out swinging hard with their “#iCant” campaign throwing real shade on Apple with lines like “48MP × 3 still doesn’t equal 200MP” and “let us know when it folds”. Subtle? No. Entertaining? Absolutely. Please pass the popcorn to us Oppo users.

Now, let’s get into the Dispatch! 🚀

Today’s reading time is 7 mins.

The Indian stock market ended on a strong note on Wednesday, driven by positive sentiment from renewed trade negotiations and expectations of a Fed rate cut. 

Bike-Taxi Specialist Becomes Market Leader: Rapido, once considered a fringe player in India’s ride-hailing ecosystem, has now surged ahead of giants Uber and Ola to command nearly half of the market share. The Bengaluru-based startup owes much of this rise to its dominance in two-wheeler taxis, though it has also made meaningful inroads into four-wheeler cabs, where it already holds about 30% of the segment. Uber controls around 50% of cab hailing, with Ola accounting for the rest. According to Sensor Tower data cited in a Citi Research report, Rapido overtook Uber in monthly active users (MAUs) on Android in January 2024. By July, Rapido was clocking nearly 50 million MAUs compared with Uber’s 30 million. Given Android’s overwhelming presence in India, this gap shows the scale of Rapido’s reach.

Uber’s Counter Act: Uber, now feeling the heat in one of its most critical markets, has resorted to aggressive countermeasures. In Bengaluru, Gurugram and Mumbai, fares have been cut by up to 25%. On the supply side, Uber has rolled out a subscription-based model for drivers, replacing per-ride commissions with a daily flat fee of Rs 120–140 plus GST. The move mirrors Rapido’s model, allowing drivers more predictable earnings.

The Bigger Battle: Uber executives acknowledge that Rapido’s rise has shifted their India playbook from customer experience to raw competition on both price and supply. Internally, Uber has set targets to improve reliability, aiming for at least 60% of rides booked to be fulfilled, up from the current 50–55%. Despite this, Uber retains some advantages: healthier unit economics, stronger global backing, and a higher take rate from drivers. Meanwhile, Rapido is also diversifying into food delivery, entering a space where Uber once struggled and eventually sold Uber Eats to Zomato in 2020.

Market Outlook: India’s bike taxi market was valued at $50.5 million in 2021 and is projected to reach up to $1.46 billion by 2030, growing at nearly 48.5% CAGR. Key growth drivers include last-mile connectivity, affordability, and the adoption of electric vehicles. However, regulatory uncertainty and intense competition remain hurdles.

Reimagining India’s Food System: As India charts its path toward becoming a developed nation by 2047, the transformation of its food system emerges as a decisive challenge. Despite producing 354 million tonnes of food grains, 367 million tonnes of horticulture crops, and 239.3 million tonnes of milk, and generating $51.91 billion in exports, large sections of the population (particularly children under five and women) continue to suffer nutritional deficiencies. This paradox of surplus yet malnutrition signals the need to move beyond incremental agricultural reforms.

Beyond The Green Revolution: For decades, India’s policies have focused on high yields and price stabilisation through procurement of rice and wheat. While this secured food supplies, it has left behind new vulnerabilities: soil degradation on one-third of farmland, water stress in over half of districts, declining soil organic carbon, and climate risks. Surpluses coexist with nutritional shortfalls across income groups.

The Triple Challenge Of Viksit Bharat 2047: By 2047, India must, feed 1.6 billion people adequately, reverse decades of environmental degradation, and build resilience to escalating climate threats. The shift requires rethinking food not just in terms of quantity, but also quality and sustainability. This means moving from calorie sufficiency to balanced nutrition, from monocultures to diverse diets, and from resource-intensive practices to regenerative farming. As India works toward Viksit Bharat 2047, the direction of its agri-food transformation will determine not only its development trajectory but also its ability to balance prosperity with sustainability.

BYD To Expand In India: Chinese EV giant BYD is accelerating its India plans as business visas for its executives ease. India MD Ketsu Zhang is set to visit, with plans to launch the compact Atto 2 SUV early next year, priced under ₹20 lakh, to take on local rivals like Tata Motors. Despite a high 70% import duty, BYD is also seeking approval to import beyond its current 2,500-car quota.

GST Tailwind: A Bank of Baroda report projects that recent GST rationalisation could lift consumption by ₹0.7–1 lakh crore in fiscal year 2026, potentially adding 0.2-0.3% to India's GDP. This is expected to be fuelled by savings from a lower effective tax rate of 10–11% on many household items. The changes are also anticipated to cut headline inflation by 55–75 bps and core inflation by 30–40 bps over six months, with the bank revising its CPI forecast from 3.5% to 3.1%.

Fitch's GDP Forecast: Fitch Ratings has bumped India's FY26 GDP growth forecast to 6.9% from 6.5%, citing strong domestic demand and a Q1 growth of 7.8% year-on-year. The agency expects growth to moderate to 6.3% in FY27 and 6.2% in FY28.

GST's Dealer Dilemma: The GST 2.0 rate changes, effective September 22, are a mixed bag. While they make cars cheaper for consumers, passenger vehicle (PV) dealers are facing a significant financial blow of ₹2,500 crore. This is because they have old stock with stranded compensation-cess credits (20-22% on large cars and SUVs, which make up about 60% of PV sales) and no clear way to get a refund or adjustment. This has created a working-capital crunch and slowed down festive dispatches, as the cars are practically unsellable at the old tax rates without dealers incurring major losses through deep discounts.

IPO Frenzy: The Indian IPO market is on fire! In a "Wild Wednesday," investors poured an astounding ₹2,700 crore into five new Initial Public Offerings in just four hours. This surge illustrates a massive appetite for new listings. Urban Company's IPO led the pack, raising ₹2,109 crore and being subscribed 1.9 times, while Dev Accelerator saw the most demand, oversubscribed 3.5 times.

IDBI vs ZEE: IDBI Bank has filed a new insolvency plea against Zee Entertainment at the NCLT, claiming a default of ₹225.22 crore. This is related to a debt service agreement for credit facilities given to Siti Networks Ltd. Zee has vehemently denied the allegations, calling the application "malicious" and "meritless." The company has said it plans to take legal action against the bank for malicious prosecution, defamation, and damages, and doesn't expect the plea to have any financial impact.

NATO Action In Polish Airspace: Poland shot down suspected Russian drones that crossed into its airspace on Wednesday, marking the first time a NATO member has fired during the Ukraine war. The operation involved Polish F-16s, Dutch F-35s, Italian AWACS surveillance aircraft, and NATO refuelling planes. Prime Minister Donald Tusk told parliament it was “the closest we have been to open conflict since World War Two,” though he added there was no imminent threat of war.

International Reaction: France, Britain, Germany, and Canada condemned the incursion. NATO commander Gen. Alexus Grynkewich said the alliance had “responded quickly and decisively.” NATO chief Mark Rutte called the incident “reckless and dangerous.” Poland has invoked Article 4 of NATO’s treaty, requesting urgent consultations.

Russia Denies Responsibility: Moscow rejected the accusations, claiming its drones targeted Ukraine and not Poland. A Russian diplomat in Warsaw said Poland had presented “no evidence” linking the drones to Russia.

Escalating European Concerns: EU foreign policy chief Kaja Kallas said the incident appeared intentional and urged harsher sanctions. Ukrainian President Volodymyr Zelenskiy warned it set “an extremely dangerous precedent for Europe” and called for a united response.

Isreal Strikes Doha: Israel carried out an air strike in Doha on Tuesday, targeting Hamas’ political leadership as the group met to consider a U.S.- backed ceasefire proposal for Gaza. The strike marked a rare attack on the territory of a U.S. ally and immediately threatened to derail mediation efforts.

Qatar and Gulf Allies Condemn Attack: Qatar, home to U.S. forces and a key mediator in the conflict, condemned the strike as a “flagrant violation of international law.” Its prime minister, Sheikh Mohammed bin Abdulrahman Al Thani, said the talks now held “no validity.” Saudi Arabia and the UAE voiced support for Qatar, warning Israel against further escalation.

Global Repercussions: The U.N. Security Council has scheduled an emergency meeting. The White House said President Donald Trump viewed the strike as “unfortunate” but confirmed Israel had provided advance notice. Mediators warned the attack could collapse fragile ceasefire negotiations, heightening fears for the fate of remaining hostages in Gaza.

Oracle’s AI Cloud Boom Catapults Ellison Ahead Of Musk: Larry Ellison briefly overtook Elon Musk as the world’s richest individual after Oracle shares surged over 25–30% on Tuesday, driven by a staggering AI-powered cloud infrastructure projection predicting $455 billion in remaining performance obligations and up to $144 billion in OCI revenue by 2030. The company’s bold outlook, underpinned by major contracts and multi-cloud momentum, left analysts “in shock,” prompting rapid price-target upgrades and renewed confidence in Oracle’s AI infrastructure credentials.

Qualcomm Unveils Driverless Tech, BMW Lends Launchpad: Qualcomm and BMW have introduced the Snapdragon Ride Pilot—a hands-free driving system set to debut in the BMW iX3—that enables hands-free highway driving on approved roads. Qualcomm CEO Cristiano Amon expects a “domino effect” as other automakers follow suit and license the technology, positioning Qualcomm for major gains in automotive revenue.

Novo Nordisk To Slash 9,000 Jobs: Novo Nordisk, announced plans to cut around 9,000 jobs (about 11.5% of its global workforce) as part of a major restructuring aimed at saving approximately $1.3 billion annually. Faced with mounting competition from rival Eli Lilly and slowing U.S. sales, the company said the overhaul would streamline operations, accelerate decision-making, and refocus investments on its heartland therapies for diabetes and obesity.

Adidas Joins Audi F1: Adidas has signed a multi-year agreement to become the official apparel partner of the Audi Formula One team, which will be based on Sauber’s operations and enter the sport in 2026. The collaboration includes creating high-performance gear for drivers, mechanics, and staff, alongside a global fanwear collection of apparel, footwear, and accessories slated to launch ahead of Audi's F1 debut.

Sushila Karki To Lead Nepal’s Interim Government: Former Chief Justice Sushila Karki is emerging as the frontrunner to head Nepal's transitional government following Prime Minister KP Sharma Oli’s resignation amid violent youth-led protests. Political parties and Gen Z protest leaders view Karki as a neutral, respected figure capable of steering the country through its political crisis.  

PM's Manipur Visit: Kuki-Zo entities in Manipur welcome the PM's likely visit on Sept 13^th,  but oppose celebratory dances due to ongoing mourning from ethnic violence that has killed over 260 people. They want him to visit displaced people in relief camps and seek a political solution for peace.

Andhra Urea Scam: YSRCP chief Jagan Mohan Reddy accused the current Andhra Pradesh government of a ₹200-250 crore scam, creating an artificial urea shortage. He claims fertiliser is being black-marketed, causing financial distress and farmer suicides.

Cabinet Approves Bihar Projects: Ahead of the elections, the CCEA, led by the PM, has approved ₹7,616 crore for two major transport projects in Bihar. This includes a ₹4,447 crore, four-lane greenfield highway and a ₹3,169 crore railway line doubling project. The projects are intended to boost connectivity, create jobs, and stimulate industrial growth in the region.

India's External Debt: India's external debt has risen by 10% to $730 billion at the end of March 2025, according to the RBI. The debt-to-GDP ratio also increased to 19.1% from 18.5% in the previous fiscal year. The rise was partly due to the appreciation of the US dollar.

Tariffs For Peace: Donald Trump has urged the EU to impose 100% tariffs on India and China. The move, aimed at pressuring Vladimir Putin, is intended to cut off Russia’s oil revenue. Trump's administration has indicated it would "mirror" any such tariffs imposed by the EU.

Gujarat Plant Tragedy: A toxic gas leak at a Gujarat Fluorochemicals Limited plant in the Panchmahal district has killed one worker. The incident occurred on September 10, 2025, and resulted in other workers being taken to the hospital for treatment. The company and local authorities responded quickly to the situation.

THAT’S ALL FOR TODAY!

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