inDrive turns to ads and groceries to diversify revenue

inDrive, known for its unique bidding-based fare system, is making significant strides beyond traditional ride-hailing services. The company has announced its plans to launch advertising in its top 20 markets and to introduce grocery delivery options in Pakistan. This ambitious move aligns with its 'super app' strategy, aimed at creating diverse revenue streams and enhancing user engagement in price-sensitive regions. The Mountain View, California-based firm is responding to the challenges posed by fierce competition and narrowing profit margins in emerging markets. By diversifying its offerings, inDrive hopes to foster growth beyond transportation. Advertising presents a lucrative revenue opportunity that can scale with user engagement, while grocery delivery is expected to encourage more frequent app usage. InDrive has established itself through a peer-to-peer negotiation model, allowing drivers and riders to set their own fares instead of adhering to fixed pricing. Despite its competitive edge, the company operates in a saturated market that includes major players like Uber and local alternatives such as taxis and autorickshaws. This context has accelerated inDrive's shift towards a 'super app' model, which aims to provide additional services like grocery delivery, particularly in frontier and emerging markets. The advertising initiative will roll out in various countries, including Mexico, Colombia, and Morocco, following successful tests in mid-2025 that generated millions of impressions and attracted interest from global brands. Initially, the focus will be on in-app advertising placements that capture user attention during critical moments, like waiting for a ride or while en route. Future plans may include in-car and on-vehicle advertising, although in-app formats will take precedence through 2026 due to operational challenges in emerging markets. As part of its grocery delivery expansion, inDrive is partnering with local operator Krave Mart in Pakistan. This effort will target an increasing consumer demand for quick commerce, capitalizing on the fragmented and informal nature of grocery retail in the region. The service is set to launch in Karachi, offering users the ability to order essentials for delivery within 20 to 30 minutes. The rollout will later extend to other major cities, including Lahore and Islamabad. With an extensive product range exceeding 7,500 items and free delivery for orders over PKR 499 (approximately $2), inDrive is positioned to leverage its existing user base for cross-selling while minimizing customer acquisition costs. Since its entry into Pakistan in 2021, inDrive has seen substantial growth, with ride volumes increasing nearly 40% year-over-year in 2025. The company has also committed a substantial portion of its $100 million multi-year investment program to Pakistan, highlighting the market's potential despite broader investor hesitance due to geopolitical concerns. inDrive’s experience in navigating emerging markets gives it confidence in investing where others may hesitate, recognizing the opportunity that exists between investor caution and local demand. Operating in over 1,065 cities across 48 countries, inDrive has surpassed 360 million app downloads, making it the second most downloaded mobility app globally, only behind Uber. As the company moves forward, it anticipates that advertising will become an increasingly significant revenue contributor, especially as grocery and delivery services expand. With ride-hailing now accounting for about 85% of revenue—down from 95%—inDrive is set to grow its other verticals, including groceries, advertising, and future financial services, over the next few years.