Indian taxi drivers rest in their taxis at the main railway station in New Delhi on July 26, 2016. Prakash Singh | AFP | Getty Images

After selling out to bitter rival Didi Chuxing in China, Uber now faces a tough fight in India. And analysts tell CNBC that the San Francisco headquartered firm - which revolutionized public transportation since it was founded by Travis Kalanick in 2009 - has to win this time around. "After losing China, Uber can't lose another market to a local player," Jaspal Singh partner at urban transportation consultancy Valoriser said. "Uber will be desperate after the China sale. Globally they are losing big… [but in India] the opportunity is immense for Uber to expand," Neil Shah, director at Counterpoint Technology Market Research, said. A Godzilla market The stakes are high. The taxi market in India stands at around $13 billion and is expected to expand to $36 billion by 2020. And the Uber kind of app-based cab hailing companies account for just 1 percent of this market, according to industry estimates. Growth is being driven by technology innovation and smartphone penetration, say experts. The current 250 million smartphone users are expected to grow to 500 million within two years, according to Counterpoint research. Rapid urbanization, a growing young population and limited public transportation options all add up to create a huge unmet demand. Can Uber woo this potentially lucrative market? "India is our single largest market outside of the United States and the merger with Didi has freed up resources for additional focus [on India]," Amit Jain, president of Uber India told CNBC.

Uber has been in India for over three year and holds second spot on the organised cab hailing market share table. It had a near 13 percent market share, based on number of rides, in 2014, which has grown to over 30 percent in 2016, according to Counterpoint research. While growth in India has been at break-neck speed for Uber, it plays second fiddle to local player Ola, which launched before Uber and leads with a near 50 percent market share. "These [Ola and Uber] are two formidable players and they are expanding crazily," says Shah of Counterpoint. Fierce competition Ola has a far bigger footprint, it is available in more than 100 Indian cities compared to Uber's 29. Both are using every marketing tool - incentives and discounts- to attract drivers and customers. While both players are trying to adapt their model to local needs Ola, say experts, is ahead in this game. It wants to fill "every space" says Singh of Valoriser. So Ola offers auto rickshaws rides, hourly rates on its taxi service plus inter-city cabs. "As a home-grown Indian company, we understand the needs of an Indian customer much better," Pranay Jivrajka, Ola's chief operating officer told CNBC. He added that "Over the next five years, Ola seeks to penetrate into the remotest corners of the country." Ola, one of the most celebrated start-up stories in India can afford this cracking expansion because it is flush with funds, including $1.2 billion from investors over the past four years, according to tracking agency Venture Intelligence. But the big spending Ola may have to pull the reins, say experts if further funding slows down.