InDrive Expands Beyond Ride-Hailing Into Multifunctional Services

Staff Report: PNN

InDrive, known for its fare-negotiation-based ride-hailing model, is now expanding beyond transportation services into new areas. The company has launched in-app advertisements in its top 20 markets and is expanding grocery delivery services in Pakistan. This initiative is part of InDrive’s announced ‘super app’ strategy, aimed at creating new revenue sources and increasing user engagement.

With competition intensifying in the ride-hailing sector and profit margins under pressure, InDrive and many other platforms are seeking alternative revenue streams outside transportation. Advertising is viewed as a relatively high-margin business. Meanwhile, high-frequency services like grocery delivery are expected to encourage repeated app usage, which would further strengthen the advertising business.

The Mountain View-based company has focused on affordable pricing since its inception. In InDrive’s model, passengers and drivers negotiate fares directly rather than relying solely on algorithmically determined rates. However, facing intense competition from international and local transportation providers, InDrive is now moving toward diversified services.

Andris Smit, Chief Growth Business Officer at InDrive, stated that in countries including Mexico, Colombia, Pakistan, Kazakhstan, Egypt, and Morocco, in-app advertisements have begun. Experimental implementation of this ad system in mid-2025 generated a significant number of impressions and drew interest from international consumer brands and banks.

Initially, ads will be displayed in the app during waiting times after booking a ride or while in the car. Experts believe these moments capture users’ attention more effectively. While there are plans to display ads inside or on vehicles in the future, InDrive will focus on digital in-app advertising at least until 2026.

InDrive is prioritizing Pakistan for grocery delivery. After Kazakhstan, it is their second-largest market. The service is being launched in partnership with local dark store operator Crave Mart, in which InDrive has already invested.

According to InDrive, demand for fast grocery delivery in Pakistan is growing. While the retail market remains largely fragmented and informal, urban families are increasingly turning to app-based services. Additionally, the company already has a large ride-hailing user base in Pakistan, allowing it to expand grocery services without additional marketing expenses.

Since beginning operations in Pakistan in 2021, InDrive has seen annual ride numbers grow by nearly 40% in 2025. During the same period, courier and delivery services grew by 67%. The highest number of users are in Karachi, Lahore, and Islamabad.

Initially, grocery delivery will be launched in Karachi, aiming to deliver essential items within 20–30 minutes. Later, the service will expand to Lahore, Islamabad, and Rawalpindi. The platform plans to offer over 7,500 products and provide free delivery for orders above a certain amount.

A significant portion of InDrive’s previously announced multi-year $100 million investment program, revealed at the end of 2023, has already been spent in Pakistan, according to Smit. Based on the market potential, the company plans to increase future investments.

Currently, InDrive operates in over 1,000 cities across 48 countries and has surpassed 36 million app downloads. A few years ago, nearly all revenue came from ride-hailing; now, advertising, delivery, and other services are gradually contributing significantly to revenue.

Over the next three to five years, InDrive plans to expand in selected markets focusing on grocery delivery, advertising, and later financial services.