Do you frequently face challenges when it comes to punctuality at work? Do you prefer traveling alone rather than traveling in a group? Are you in a situation where your regular driver is unavailable, but you have to attend an urgent meeting with friends? Are your parents not available to take you to tuition classes? Or perhaps, you just feel the need to get out and relieve boredom?
fret not! Rapido is here to take all your transportation worries away. With our user-friendly app, you can now easily navigate the city while ensuring your safety and convenience even during night time travel. Our state-of-the-art tracking system keeps you informed and safe throughout your journey.
It is noteworthy that Rapido has received substantial funding from Westbridge Capital, which reflects our commitment to expand our services and provide you with exceptional transportation solutions.
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In this article, we will talk about the business model of Rapido and how it became India’s number one bike taxi service.
Rapido – Company Highlights
- Startup Name: Rapido
- Headquarters: Bengaluru, Karnataka, India
- Sector: Mobility Tech
- Founders: Pavan Guntupalli, Rishikesh SR, and Aravind Sanka
- Founded: November 2015
- Valuation: $830 million
- Total Funding: $324 million
- Parent Organization: Roppen Transportation Services
- Website: rapido.bike.com
Rapido – Introduction
Rapido is an Indian online bike taxi aggregator based in Bangalore. It was founded in the year 2015 and currently operates in more than 100 cities across the country, providing transportation services within these cities and their surrounding areas. With a daily user base of over 15,000 registered riders, Rapido has established itself as a major player in the Indian transportation market.
Rapido – Industry
The Indian bike taxi market was valued at $50.5 million in 2021. Allied Market Research projections indicate that the industry is poised for strong growth with an estimated compound annual growth rate (CAGR) of 48.5% from 2022 to 2030, eventually reaching the projected level. Valued at $1,478 million by 2030. In a separate report, Ola Mobility Institute (OMI), Ola’s research arm, has highlighted the substantial revenue potential of bike taxis in India, and estimates it to be a lucrative $5 billion market.
Rapido Founders
| Name | Role |
|---|---|
| Pavan Guntupalli | Co-Founder |
| Rishikesh SR | Co-Founder |
| Aravind Sanka | Co-Founder |
Pawan Guntupalli
Pavan Guntupalli is one of the co-founders of Rapido, having previously co-founded Ropan Labs. He earned a B.Tech degree in Electronics and Electrical Communications from the Indian Institute of Technology, Kharagpur. Guntupalli gained valuable experience through summer internships at Reliance Communications and Breakthrough Management Group. Apart from proficiency in native languages, he is also fluent in Korean. Before Rapido, he worked as a software developer at Samsung Research India.
Rishikesh SR
Hrishikesh SR is another co-founder of Rapido. He completed his education at PES University, where he obtained a BE degree in Computer and Information Science. Hrishikesh is also the founder and promoter of IMPStant. His notable achievements include receiving the ‘Best Project of the Year Award’.
Arvind Sanka
Arvind Sanka serves as co-founder of both Rapido and Carrier. He pursued his educational journey at the Indian Institute of Technology, Bhubaneswar, where he earned a B.Tech degree in Mechanical Engineering. Prior to his roles at Rapido and Carrier, he held the position of Finance Business Partner at Flipkart.com after a successful summer internship at Tata Motors.
Rapido Success Story
Rapido was not an overnight success; For this one had to face many struggles and face tough competition in the market. Here, we are highlighting some of the key factors that have contributed to Rapido’s enduring success.
Career days:
Rapido’s foundation dates back to the carrier days, built on a logistics and supply-chain-driven model that enabled its customers to transport their goods seamlessly.
Transition to B2C:
However, according to Arvind Sanka, one of Rapido’s co-founders, they “quickly realized that there was more room for growth by switching gears from B2B to B2C.” The change in business-to-consumer models meant a shift from trucks to bikes to meet customer transportation needs.
Starting Team:
To start his new venture, he started working with an initial team of 15-20 people. These individuals sowed the seeds for Rapido and contributed to the company’s success through hard work, perseverance and dedication.
A different perspective:
The founders of Rapido wanted to hire individuals, especially those who owned two-wheelers. Their vision was to create something different from established ride-sharing giants like Ola and Uber, which had invested heavily in vehicle fleets.
Rapido Captain App:
They believed in creating an app like the Rapido Captain app, which would allow two-wheeler owners to register themselves and verify their details with the company.
Solutions to urban challenges:
Rapido acknowledged that Ola and Uber may not be affordable for everyone on a daily basis, and that traffic congestion in major cities was a growing concern. Their goal was to provide a more affordable and efficient solution for daily commuters.
Rapido – Business Model
- Ride Booking: Users can book a ride through the Rapido app, specifying their desired destination.
- Captain Arrival: Once a ride is booked, a designated rider, called a “Captain”, is dispatched to the user’s location for pickup.
- Fare Calculation: The fare for each ride is determined based on the distance to the user’s destination. Fares are higher due to longer distances.
- Captain Registration: Individuals interested in becoming a Captain must register through the Rapido Captain App. To complete their registration, they need to provide and verify their information by submitting the required documents as specified by Rapido.
- Vehicle Requirements: Captains have the flexibility to use a scooter or motorcycle for their rides. However, there is a condition that the vehicles should be two-wheelers and not older than the year 2010. This requirement ensures the safety and reliability of vehicles used in service.
Rapido – Revenue Model
Rapido’s revenue model consists of two primary aspects, and the company demonstrated remarkable growth in 2019 with a 13x increase in its revenue.
- Commission-based model: Rapido acts as an intermediary between its network of captains and ride seekers. In this commission-based model, the company generates revenue by charging a commission fee equal to 20% of the total fare for each ride. This approach ensures a steady income stream for Rapido while providing income opportunities for the Captains.
- B2C Commission Model: Rapido expands its revenue streams by engaging in business-to-consumer (B2C) logistics services. Through partnerships with logistics companies, Rapido facilitates efficient delivery of goods and commodities. This additional source of revenue strengthens Rapido’s financial position and diversifies its operations.
- Brand Advertising: Brand advertising plays a vital role in the revenue generation strategy of Rapido. By providing advertising opportunities to brands, Rapido not only enhances their reputation but also aids their growth. This advertising revenue contributes to Rapido’s overall financial success.
Engaging these diverse revenue streams, Rapido has established itself as a dynamic player in the mobility and logistics sectors, demonstrating substantial revenue growth and creating value for its partners and stakeholders.
How does Rapido Works?
- Bike-hailing app: Rapido works as a bike-hailing application, functioning similarly to a traditional taxi-booking service.
- User Booking Process: Users begin the booking process by downloading the Rapido app, creating a personal profile and specifying both pick-up and drop-off locations for their ride.
- Captain Assignment: Upon confirmation of a booking, Rapido assigns a driver, called a “Captain”, to the user’s ride. This captain will reach the designated pick-up location to facilitate the journey.
- Fare Structure: Rapido ride fare is structured as follows: A base fare of ₹20 applies to each ride. An additional ₹3 is charged for every kilometer during the journey.
Rapido’s seamless booking process and transparent fare structure make it a convenient and cost-effective option for users looking for quick and efficient transportation services.
In conclusion
Finally, I hope you have understood the business model of Rapido. If I have missed anything please let me know in the comments section; It would be great to see your suggestions. And as you know, Rapido is currently facing many challenges, for example, the government has banned Rapido in Delhi.
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