Rapido, a leading player in the two-wheeler ride-hailing industry, has gained significant traction in recent years. As a company that disrupted the conventional taxi-hailing sector, Rapido introduced an innovative solution that leverages the potential of India’s vast two-wheeler market to solve the problem of day to day commute in India. This article delves into Rapido’s revenue model and explores the various sources that drive its financial success.
Founders of Rapido
Rapido was founded by Aravind Sanka, Pavan Guntupalli, and Rishikesh SR in 2015.
India has a shortage of reliable public transportation and the founders of Rapido recognized the potential of two-wheeler transportation in India and thus set out to revolutionize the ride-hailing industry.
Rapido Business Model
Rapido operates on a simple and innovative business model. It connects people who need quick and affordable rides with bike taxi drivers, known as Rapido Captains, through its mobile app interface.
Thus Rapido provides the interface that connects customers with bike taxi drivers.
Rapido also has a B2B segment wherein it provides logistics services to businesses by helping them with last-mile delivery of their products through its network of captains.
Rapido Revenue Model
To understand the revenue model of Rapido it is important to understand the relationship between Rapido and the bike-taxi drives (also known as Captains).
Neither does Rapido own or operate any of the vehicles used to provide the logistics/transportation services; nor are the ‘Captains’ under its employment.
The Captains are independent contractors who have entered into a contract with Rapido to list their vehicles on the Portal and provide transportation services through the Portal in accordance with the terms and conditions determined by Rapido.
Rapido makes money through a commission-based system, wherein the company earns a percentage of the fare for every ride or last-mile delivery facilitated through its platform. Rapido acts as an intermediary, connecting customers with the pool of bike taxi drivers registered on their platform.
Rapido also actively explores advertising and brand partnership opportunities to augment its revenue streams. The company has collaborated with numerous brands, such as food delivery services, e-commerce platforms, and local businesses, to promote their products or services to Rapido’s extensive user base.
The Challenges faced by Rapido
Rapido faces several challenges in operating its business in India. Some of the major challenges are:
- Regulatory hurdles: Bike taxi services are not legalised in many states in India. Rapido has faced bans, fines and seizures of its bikes by the authorities in some states such as Karnataka, Tamil Nadu, Telangana and Delhi. Rapido has been lobbying with the government to create a favourable policy framework for bike taxi services in India.
- Safety concerns: Bike taxi services pose safety risks for both the riders and the Captains. Rapido has taken several measures to ensure safety such as providing helmets, insurance, GPS tracking, SOS button and background verification of Captains.
Final Words
Rapido has been on a mission to revolutionise urban mobility in India by providing affordable and convenient bike taxi services to millions of users. Rapido has also been creating employment opportunities for lakhs of Captains who can earn a livelihood/supplemental income by using their own two-wheelers.
However, when it comes to two wheelers, there will always be concerns about safely and regulatory hurdles for the company would not be uncommon. How well Rapido is able to navigate these issue, only time can tell.