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.