In the bustling urban landscapes of today, the surge in traffic congestion has become an ever-looming challenge, leaving many of us feeling trapped in a gridlock of frustration and helplessness. The struggle to reach our destinations on time seems impossible, and we yearn for a miracle to whisk us away from the clutches of traffic chaos.
Amidst this modern-day urban ordeal, emerging technological advancements and ingenious minds have paved the way for innovative solutions to rescue us from such vexing situations. One such beacon of hope is Rapido – a trailblazing company that has revolutionized urban transportation, offering a seamless and efficient mode of commuting for millions.
This blog will delve into the transformative Rapido business model, exploring how it has become a game-changer in urban mobility. From its humble beginnings to its soaring success, we’ll unravel the secrets behind Rapido’s meteoric rise and understand how it continues redefining how we navigate our bustling metropolises. So, buckle up as we discover the essence of Rapido’s innovative approach and how it has become the ultimate savior for commuters during traffic woes.
What is Rapido?
Rapido is a logistics and bike taxi aggregator service provider in Bangalore, India. The company was founded in 2015 and operates in more than 100 cities. Explore the Rapido history, funding details, and know more about the company’s success story.
History of Rapido
Rapido is here to revolutionize the traveling experience. The bike taxi company brings you redefined comfort & convenience with its disruptive service model.
Industry Type: Transportation.
Founders: Pavan Guntupalli, SR Rishikesh, and Aravind Sanka.
Headquarters: Bangalore, Karnataka, India.
Number of locations: 100+ cities.
Area served: India.
Services: Bike taxi, Auto rickshaw.
Happy Customers: 10 million.
Number of Rides: 100 million rides.
App Downloads: 25 Million app downloads.
Rapido’s co-founder in 2019 claimed that the company had employed 500,000 people in India. In 2019, the bike taxi company had one crore registered users while targeting 50 million customers in 2022. The number of customers opting for services is increasing day by day.
After the pandemic breakout, Rapido expanded its logistics operations and provided hyperlocal delivery for eCommerce companies and hyperlocal delivery for local businesses. In 2020, Rapido expanded 3-wheeler auto services to 14 cities across ten states.
Regarding the funding round, Rapido backer AdvantEdge plans to launch a third fund of $80 million to $100 million in mobility solutions companies. Fund III will mainly target establishments that lease EVs to other companies, including Zypp, which rents e-scooters to delivery companies like Swiggy, Zomato, etc.
In 2022, Rapido received around $180 million in a funding round led by food ordering & delivery company Swiggy, raising the bike taxi company’s valuation to $830 million. Participants in the Series D round include TVS Motor Company, Shell Ventures, Nexus Ventures, and Westbridge. Have a quick look at the image to know more about Rapido’s funding history and more.
You might know the Rapido success story, funding history, and more. Getting inspired by the success story of the bike taxi company, many entrepreneurs are thinking of investing in the Rapido clone app to take their business online and satisfy the growing requirement of more and more riders. Before starting your business, understanding the Rapido business model, how it works, and makes money can be an intelligent choice.
Rapido Business Model: How the Company Works?
The bike taxi company allows users to book a ride; Captain or driver will reach the location. The fare includes $20, while the company charges ₹3 for a kilometer of the ride. The “Captains” or “Drivers” must register through the Rapido-Captain app and submit the required documents for verification. The driver’s vehicle must not be older than 2010; they can provide service through motorcycles, e-bikes, scooters, etc.
Rapido operates on a B2C (business-to-customer) model, which means they directly serve their clients as a business entity. Their primary focus is on providing a seamless experience to consumers like us. Through their innovative approach, they offer passenger drop services and leverage vehicle storage to provide a reliable carriage service.
With the convenience of their user-friendly mobile app, customers can easily hire a bike taxi directly from Rapido. The process is straightforward – after a successful booking, the customer is promptly provided with essential details about the assigned driver, known as a “captain.” This includes the captain’s name, photo, and bike number, ensuring the customer is well-informed about the individual they will be commuting with.
Rapido prioritizes customer safety and transparency by offering these details upfront. Knowing the captain’s identity gives customers a sense of security and builds trust in the service. This unique approach sets Rapido apart in the bike taxi industry, making them a preferred choice for many urban commuters.
By consistently catering directly to their end consumers, Rapido aims to enhance the overall travel experience and meet the diverse transportation needs of people across different cities. Their commitment to providing a reliable, affordable, and customer-centric service has contributed to their popularity and success in the market.
How Does Rapido Work?
Now you have deep insight into the Rapido business model, let’s explore how Rapido works. It operates similarly to ride-hailing platforms like Uber or Lyft. Explore how Rapido enables riders to book service with a few simple clicks.
Booking a Ride
Users can book a bike taxi through the mobile app. The app is available for Android as well as iOS devices and can be downloaded from the respective app stores.
Setting the Pickup and Drop-off Locations
After opening the app, users need to enter their pickup location and destination. The app will then show the estimated fare and the nearest available Rapido rider to the pickup location.
Confirmation and Tracking
Once the user confirms the booking, a nearby Rapido rider (known as a “Captain”) will be assigned to the ride. The user can track the Captain’s location on the app as they approach the pickup point.
The user meets the Captain at the designated pickup location. The Captain will have an extra helmet for the user’s safety. The user sits pillion (behind the Captain) during the ride.
Completing the Ride
Once the ride is completed, the fare is calculated based on the distance traveled and time taken. The payment can be made through various methods available in the app, like credit/debit cards, digital wallets, or cash.
Rapido usually emphasizes safety and security. Captains undergo background checks, and the bikes are expected to meet specific safety standards. Riders must wear helmets, and the company encourages users to do the same.
Rapido for Parcel Delivery
Apart from offering passenger rides, Rapido may also provide parcel delivery services. Users can use the Rapido app to send packages or documents to specific locations within the city.
How Rapido Benefits Riders?
Rapido offers several benefits to riders, making it a convenient and popular choice for transportation in India. Here are some of the critical advantages for riders:
• Affordable Transportation.
• Faster Commute.
• Last-Mile Connectivity.
• Real-time Tracking.
• Convenience and Accessibility.
• Reduced Traffic and Pollution.
• Prioritizes Rider Safety.
• Parcel Delivery Service.
• Cashless Transactions.
• Promotions and Offers.
How Does Rapido Benefit Captains or Drivers?
Rapido’s business model benefits the customers and provides several advantages to the bike riders, referred to as “Captains” or drivers. Here are some of the ways Rapido benefits its Captains:
• Income Generation.
• Flexible Work Schedule.
• Increased Job Opportunities.
• No Initial Investment.
• Ease of Registration.
• Earnings Transparency.
• Increased Utilization of Vehicles.
• Community and Support.
It’s important to note that the benefits offered to Captains may vary based on location, demand, and specific terms and conditions set by Rapido. Additionally, Rapido is introducing new features or services to benefit its Captains and riders further.
Rapido Revenue Model: How the Company Generates Money?
Amazing Rapido business model helps the company to generate significant profit with ease. If you want to make money through an app similar to Rapido, having insight into its revenue stream can help you. Check the Rapido revenue model in-depth to know how the bike taxi service provider makes money.
Commission from Captains
Rapido charges a commission or service fee for each completed ride from the Captains (bike riders). The commission is typically a percentage of the total fare earned by the Captain for providing the ride. This is the primary source of revenue for Rapido as it scales with the number of rides completed through their platform.
Rapido may implement surge pricing during periods of high demand or low supply. This means that the ride fare can increase temporarily, allowing Rapido to earn higher revenue from each ride while also incentivizing more Captains to be available during peak times.
Advertising and Partnerships
Rapido may partner with businesses and advertisers to display advertisements on their platform. This could include promoting local businesses or running targeted advertisements to reach their user base. Revenue is generated through advertising fees or sponsored promotions.
In addition to passenger rides, Rapido may also offer parcel delivery services. Users can use the Rapido app to send packages or documents to specific locations within the city. Revenue is generated by charging fees for these delivery services.
Rapido may introduce subscription-based models or loyalty programs for its regular users. For a monthly or yearly fee, subscribers could get benefits such as reduced service charges, priority booking, or other exclusive offers. This can provide a stable revenue stream for the company.
Rapido often experiments with different revenue streams and business strategies to adapt to market changes and customer demands.
Radio Business Model: Is the Company Changing It?
Rapido has launched RapidoBox, an on-demand delivery service where customers can request drop and pick medicines, food, groceries, etc. The P2P on-demand delivery service enables users to exchange medicines, food, or groceries with their family and friends who cannot step out for essentials or have run out of essential items in times of need.
Rapido ensures that its app is accessible and user-friendly to all sections of society. To achieve this, the company is developing special features tailored for visually challenged users, enabling voice-to-text commands for more straightforward navigation and booking.
Rapido aims to provide its riders with seamless and instant money transfers, eliminating the need for any waiting period for payment processing. However, despite its efforts, Rapido faces challenges, notably legal issues surrounding bike taxi services. The company finds itself in conflict with the State Transport Departments of various cities, as the legality of bike taxis continues to be a contentious issue.
Despite these obstacles, Rapido remains determined to innovate and solve its challenges. As a recent example, during the enforcement of the odd-even rule in Delhi, Rapido offered free rides to commuters, showcasing its commitment to providing convenient and eco-friendly transportation options.
With Rapido, riders can leave their traffic and parking concerns behind and enjoy a hassle-free last-mile commute at their convenience, all at the swift pace that the name “Rapido” suggests.
Are You Ready to Launch an App Similar to Rapido?
Rapido’s Business model helps the company provide convenient and affordable bike taxi services, benefiting customers and Captains. Safety and customer satisfaction are paramount, and the company continues to innovate in the bike taxi industry.
White Label Fox offers a Rapido clone solution for entrepreneurs interested in creating a similar bike taxi platform. With their expertise, they can help you develop a feature-rich and user-friendly app, enabling you to launch your bike taxi service and successfully tap into the growing market. Get a free quote and know how much it costs you to build an app like Rapido, or directly reach us at [email protected]