In the bustling streets of many Indian cities, a revolution in urban transportation is quietly gaining momentum. RAPIDO, the two-wheeler ride-hailing service, that has not only changed the way people commute but also how businesses can thrive in the digital age. But have you wondered how Rapido makes money? Join us on a journey as we unveil the secrets behind Rapido business model, exploring its various revenue streams and the strategies that have powered its growth.
Rapido Company Profile
Rapido is an Indian based bike taxi and ride sharing platform that has rapidly gained popularity and transformed urban mobility since its founding in 2015. Rapido set out on a mission to redefine the urban mobility landscape in India.
Rapido’s core service is its two-wheeler taxi platform, where users can seamlessly book rides on motorcycles and scooters through a user-friendly mobile app.
This innovative approach to commuting not only provides users with swift and cost-effective rides but also empowered local bike owners and riders by offering them a unique opportunity to join the Rapido network and earn a livelihood.
|Name of the company||Rapido|
|Founders||Aravind Sanka, Pavan Guntupalli, and SR Rishikesh|
|Headquartered in||Bangalore, Karnataka|
|Number of cities served||Over 100|
|Service provide in||Bike Taxi, Auto rickshaw, third party logistics|
|Valuation (2023)||Rs. 80 crore|
|Revenue (2022)||Rs. 144.8 crore|
|Funding (2022)||Rs. 31.04 crore|
Rapido started gaining recognition and popularity in the Indian market shortly after its launch in 2015. The company’s unique concept of two-wheeler taxi services, which provided a quick and cost-effective solution for urban commuters, quickly garnered attention and interest of the people. The driver or the rider in Rapido is termed as the CAPTAIN.
Some key features of Rapido
Two-wheeler taxi service – Raoido’s primary service allows users to book rides on motorcycles and scooters through their mobile app. This provides a nimble and cost-effective solution for short-distance travel and last-mile connectivity.
Affordability – Rapido is known for its competitive pricing, making it an affordable option for a wide range of commuters, especially for quick trips within urban areas.
Convenience – The Rapido app is user-friendly and offers a seamless booking experience. Users can easily locate nearby riders and book rides with just a few taps on their smartphones.
Safety measures – Rapido places a strong emphasis on safety. They provide helmets for riders and passengers both and conduct background checks and training for their riders to ensure a safe and secure journey.
Quick response – Rapido riders are typically readily available, ensuring minimal waiting time for users. This quick response time is particularly valuable in congested urban areas.
Cashless transactions – Rapido offers cashless payment options through various digital payment methods, enhancing convenience and security for users.
Note: We also have a detailed write-up on Dunzo case study. To know more check it once!
Rapido Business Model
Rapido works on a B2C (Business-to-Customer) and peer-to-peer business model. Connecting consumers or customers directly to the rider/captain who is willing to offer a ride at that time. Functioning as a business platform.
During the Covid-19 pandemic, Rapido leveraged its extensive network of riders to offer delivery services for essential goods and medicines. This adaptive approach helped them generate revenue while serving the society during a challenging time.
By continuously innovating and diversifying its services, Rapido has not only established itself as a convenient and cost-effective transportation option but also created multiple revenue streams to sustain and grow.
Key components of Rapido’s business model
User-centric approach – At the core of Rapido’s success is its unwavering commitment to its users.
The Rapido mobile app is designed with user convenience in mind, seamlessly connecting riders with nearby bike owners and riders. User reviews and ratings play a pivotal role in maintaining service quality and trust.
Revenue generation strategies – Rapido employs a multifaceted approach to revenue generation, ensuring profitability while keeping rides affordable for users. There are commission fees, surge pricing, advertising and promotions, and then there’s an amazing feature by Rapido rentals.
Safety and Trust – Safety is a cornerstone of Rapido’s business model. The company provides helmets for both riders and passengers. Conducts rigorous background checks, and offers training for its riders. This commitment to safety not only ensures user trust but also strengthens Rapido’s position in the competitive ride-hailing market.
Market Expansion and Innovation – Rapido’s journey is characterized by rapid expansion into multiple cities across India, increasing its user base and market reach. Their presence now spans major urban centers, solidifying their dominance in the Indian ride-hailing landscape. Moreover, Rapido has exhibited a remarkable ability to innovate, introducing services like “Rapido Auto”.
Empowering local communities – Rapido’s platform not only benefits commuters but also empowers local bike owners and riders to earn a livelihood by joining the Rapido network as partners.
How Does Rapido Make Money?
In the bustling labyrinth of urban life in India, where every minute counts, Rapido has carved its niche as the go-to solution for swift and affordable transportation. But what powers this behemoth of two-wheeled mobility? How does Rapido convert the voice of motorcycle engines into a symphony of profits.?
It does so through the following money-making sources-
Commission fees – Rapido’s primary source of income lies in the commission fees it charges for each completed trip. Typically ranging from 15% to 20% of the total fare, these fees form the bedrock of Rapido’s revenue stream.
Surge pricing – Rapido, like its peers in the ride-hailing industry, employs surge pricing during periods of heightened demands. This dynamic pricing strategy temporarily increases fare, maximizing profits during peak hours.
Advertising and Promotions – Rapido capitalizes on its vast user base by offering advertising space within the app.
Businesses pay to showcase their products or services to Rapido users, creating an additional income channel.
Rapido Rentals – To diversify its offerings, Rapido introduced “Rapido Rentals” enabling users to rent bikes for extended durations, catering to a broader range of transportation needs.
Rapido Pay – The Wallet for convenience Rapido has introduced its digital wallet service. This wallet allows users to make payments for rides and other services within the app. Rapido earns fees from transactions processed through Rapido Pay, adding another layer to its revenue strategy.
Subscription Plans – The world of subscription service has caught the attention of many tech companies, and Rapido is no exception. While not yet widespread, Rapido may introduce subscription plans offering users benefits like discounts and priority service. This could create a recurring revenue stream, enhancing the company’s financial stability.
Marketing Strategies of Rapido
Some of them are
Digital Marketing – Rapido heavily relies on digital marketing campaigns. They use social media platforms like Facebook, Instagram, Twitter, and YouTube to run targeted advertising campaigns. These platforms allow Rapido to reach a broad audience and engage with potential users.
In-App Promotions – Rapido leverages its app to promote its services. They often offer discounts, promo codes, and special offers to attract and retain users. These promotions encourage users to continue the app for their transportation needs.
Partnerships and Tie-Ups – Rapido often engages in localized marketing efforts. This includes on-ground promotions, events, and collaborations with local businesses to increase visibility and user engagement in specific cities.
User reviews and Ratings – Rapido encourages users to leave reviews and ratings within the app. Positive feedback builds trust and helps attract new users. Negative feedback is also taken seriously, allowing Rapido to address concerns and improve service quality.
Sponsorships and Events – Rapido has sponsored events and participated in transportation related expos and exhibitions, further enhancing its brand visibility and industry presence.
In the world of urban mobility, Rapido has not just made money; it has transformed the way people commute and provided livelihood opportunities for thousands of riders. Their business model, rooted in customer satisfaction and adaptability, is a blueprint for success. As Rapido continues to expand its horizons and explore new avenues, one thing is certain- their journey is far from over, and their story of success continues to captivate us all.