For two matroids $\mathcal{M}_1$ and $\mathcal{M}_2$ defined on the same ground set $E$, the online matroid intersection problem is to design an algorithm that constructs a large common independent set in an online fashion. The algorithm is presented with the ground set elements one-by-one in a uniformly random order. At each step, the algorithm must irrevocably decide whether to pick the element, while always maintaining a common independent set. While the natural greedy algorithm---pick an element whenever possible---is half competitive, nothing better was previously known; even for the special case of online bipartite matching in the edge arrival model. We present the first randomized online algorithm that has a $\frac12 + δ$ competitive ratio in expectation, where $δ>0$ is a constant. The expectation is over the random order and the coin tosses of the algorithm. As a corollary, we also obtain the first linear time algorithm that beats half competitiveness for offline matroid intersection.