The rising traffic in most of the cities these days has become an unavoidable problem. Getting stuck in traffic in today’s metropolitan cities is one of the inescapable situations.
More often, there comes a time when you have to reach a destination, but there is no way for you to do so. In such times, you are frustrated and worried while thinking of some miracle to happen. But thanks to new-age technological advancements and innovative minds, we have companies like Rapido to rescue us in these kinds of situations.
You will just have to install the app, and you will be able to travel anywhere within the city. Rapido joined the Unicorn Club on 29 July 2024 with a $120 million investment from WestBridge Capital at a valuation of over $1 billion.
Here’s a look at the business model of Rapido and how it makes money.
About Rapido
Rapido Business Model
How Does Rapido Make Money | Rapido Revenue Model
Rapido USP
Rapido SWOT Analysis
About Rapido
Rapido is an Indian bike taxi and logistics service provider headquartered in Bangalore, Karnataka. Formerly known as the theKarrier, the company was founded in 2015 by two IIT alumni and PESU alumni – Aravind Sanka, Pavan Guntupalli, and Rishikesh SR.
Hero MotoCorp Chairman Pawan Munjal and former Google India Vice President Rajan Anandan are people who have stakes in Rapido. The company operates in almost 100+ cities and had 20 million+ customers in FY23.
Nicole Braganza
Areas of Operation
Due to the increasing demand for Rapido, they have expanded their operations almost all over India. Some of the cities where Rapido operates are Coimbatore, Jalandhar, Patiala, Tirupati, Trichy, Kolkata, Udaipur, Amritsar, Bhubaneswar, Rohtak, Vishakapatnam, Sagar, Hyderabad, Gwalior, and many more.
Key Products and Services
Rapido is a bike taxi service provider, but along with that, they also have auto-rickshaw and third-party logistics services.
It was in 2020, after the COVID-19 outbreak, that the company decided to expand its logistics that offer hyperlocal delivery for local businesses and eCommerce companies.
Following that year, Rapido decided to expand its Auto services in 11 additional Indian cities in the states of Rajasthan, Gujarat, Uttar Pradesh, Punjab, and Andhra Pradesh, to name a few.
Rapido also offers a service called Rapido Corporate. It is an employee travel management for organizations. In this service, organizations need to partner up with them if they want to offer travel services to their employees.
Target Audience of Rapido
Rapido’s target audience is mainly commuters who travel in their day-to-day lives. Its main goal is to offer services to commuters who prefer open and safe commute options in comparison to over-expensive cab rides.
Purbalee Dutta
Rapido Business Model
As per the latest reports in February 2025, Rapido has shifted to a SaaS model, removing daily commissions for drivers, says Co-founder Aravind Sanka. Drivers now pay a subscription fee upfront and keep 100% of their fares. The platform serves two million drivers monthly, focusing on value for both riders and customers.
Before this, the business model of Rapido was mainly B2C (Business-to-customer model). This means that they offer their services directly to their customers as a business entity.
In addition to this, they have also leveraged vehicle storage options to provide carriage services. Moreover, the end receivers of their product and services are customers like us.
Their B2C model allows consumers to book a bike ride through their app. Customers need to download the Rapido app, create a profile, and set pick-up and drop-off locations.
Upon successful booking, a driver known as the ‘Captain’ will be assigned with their details like name, photo, and other details. This gives assurance to customers regarding the driver with whom they are going to commute. Users can make payments either with cash or using a digital payment method.
For Captains, Rapido allows anyone with two-wheelers to register as Captains. They are free to choose whatever vehicle they want, like motorcycles, scooters, or e-bikes, but it cannot be older than 2010. They also need to have a phone with a 3G/4G mobile data connection.
Rapido encourages people between the ages of 18 and 50 to be Captains. Presently, the company is looking for more female captains to join their community.
How Does Rapido Make Money | Rapido Revenue Model
Rapido makes money through its bike and rental services. Rapido’s revenue model is mainly of two categories:
The Commission-based
Commission-basis means the company generates money by acting as an intermediary between the ‘Captains’ and the customer. They charge a fee of 20% of the entire fare.
The B2C commission-based
The other method through which Rapido earns money is through its B2C logistics services, Rapido Store. This is a major source of revenue as the company focuses on delivering the goods of logistics companies to their preferred location.
Advertising and Partnerships
Rapido works with businesses to show ads on their platform. They may promote local shops or display targeted ads for their users. They earn money through ad fees or paid promotions.
Delivery Services
Rapido doesn’t just offer rides but also delivers packages. Users can send parcels or documents through the Rapido app within the city. Rapido earns money by charging delivery fees.
Rapido Financials
| Rapido Financials | FY23 | FY24 |
|---|---|---|
| Operating Revenue | INR 443 crore | INR 648 crore |
| Total Expenses | INR 1172 crore | INR 1066 crore |
| Profit/Loss | INR -675 crore | INR -371 crore |
Rapido has grown 4.4 times over the past two years, with revenue rising from INR 145 crore in FY22 to INR 648 crore in FY24. The ride-hailing company also reduced its losses by 45% in FY24, helped by better cost management. In 2024, the operating revenue of Rapido increased by 46.3% to INR 648 crore from INR 443 crore in 2023. The company’s total expenses decreased by 9%, dropping to INR 1,066 crore from INR 1,172 crore. The company reported a loss of INR 371 crore in 2024 compared to INR 675 crore in 2023.
Sakshi Jadhav
Rapido USP
The Unique Selling Proposition (USP) for Rapido precisely gives it an edge over other forms of ride-hailing. It addresses some of the most critical needs of a typical urban commuter in India. In fact, unlike all the other different models, which are focused on levying high commissions, Rapido has gone to the subscription mode, providing rides at comfortable prices, especially for regular commuters and those living in smaller cities. This mode of transportation, which is speed and convenience-oriented, offers an easy and short bike taxi ride, which will save travel time by 50% in congested areas. Economically competing with taxi fares, Rapido is an alternative.
For safety, this platform boasts “Captains” who have undergone a rigorous vetting process, and the rides can also be tracked through GPS. The app ensures smooth riding experiences through real-time tracking, cashless payments, and customer service. Now, Rapido has also gone beyond bike taxis to include auto-rickshaws, cabs, and delivery services in its portfolio, strengthening its outreach and boosting user engagement. All put together, it’s a game changer in the ride-hailing landscape of India for affordability, speed, and reliability.
- One of the most important things to look at in Rapido’s services is its affordability. For daily commuters, Rapido seems to be the perfect mode of transport. At any time, either day or night, a traveler’s trip is less expensive than most cab rides.
- They provide helmets for safety.
- The app has easy accessibility because it is available in five major languages.
- There is also a speed-tracking feature that lets the Captains know their speed.
- Rapido’s business model offers insurance for both parties – the driver and the rider.
Rapido SWOT Analysis
Rapido Strengths
- Dominance in the Market: Rapido’s former trust is reliant on its consumer consideration over its 65 percent market share in India’s bike-taxi industry.
- Economical Services: Easy, affordable rides make an attractive option for budget-off commuters. Its pricing strategy fills a gap between traditional taxi riding and new-age app-based ride-hailing services, catering to a very large customer base.
- Simple and Convenient: The company’s app is an apt source for booking rides easily and quickly, bringing the customer satisfaction clause into operation effect for the company.
- Rapid Expansion: This company operates in about 100 cities and thus has successfully tapped into new markets and continues expanding.
- Driver-focused Model: The platform provides a fixed payment fee structure to a driver rather than payment based on commission per ride, thus cultivating more trust and satisfaction among its driver partners.
Rapido Weaknesses
- Perception Problems: Some would-be users may consider bike rides to be unsafe and so deter their usage. Some features for assuring safety have been put in place, but it is still very difficult to alter the perceptions of consumers.
- Limited Service Diversification: Rapido has started diversifying into food and courier deliveries and can begin to move away from its emphasis on bike-taxi services; however, it could limit the potential to attract a wider customer segment compared to competitors offering various modes of transport.
- Inconsistent Operations: Users experience non-uniformity of service even after developing all the backend technology, which hinders the overall trust in the service.
Rapido Opportunities
- Unexploited Potential in the Market: Further market penetration across India opens good potential for Rapido to scale its customer base and market share.
- Diversification into New Services: More channels, such as car-hailing or food delivery, can be innovated to attract additional customers and improve their stake in the competition.
- EV Adoption: Adaptation to EVs may fall within the spectrometer of developing eco-friendly environment concerns and the government’s pro-poor approaches.
Rapido Threats
- Intense Competition: Well-established competitors like Ola and Uber as well as newer emerging regional players, pose a challenge to Rapido’s market share as well as its pricing strategies. These competitors could also create pressure on profitability and growth.
- Regulatory Challenges: The ongoing regulatory tussles concerning ride-hailing in India, coupled with possible changes in government policies, could impact Rapido’s operations and compliance costs.
- Economic Factors: Any economic downturn or shift in consumer spending behavior could substantially impact demand for ride-hailing services, especially in the price-sensitive segment.
Conclusion
It is quite clear by looking at the business model of Rapido, that customers and drivers both benefit greatly. By always making constant app updates and improving the system, they wish to make their app user-friendly for every walk of life. They are soon going to launch special and simplified features for visually challenged people.
Since its inception in 2015, Rapido has come a long way and joined the unicorn club on 29 July 2024. Day and night they are striving hard to be the solution for India’s intra-city commuting problems. Rapido’s bike services are a boon for anyone who wishes to reach their destination in a jiffy.
FAQs
How does Rapido make money or what is Rapido revenue model?
Rapido earns money by charging a fee of 20% of the entire fare. The company also earns from its logistics services. Visit their website to learn about the Rapido fares chart.
Who are the founders of Rapido?
Aravind Sanka, Pavan Guntupalli, and Rishikesh SR founded Rapido in 2015.
What is Rapido business model?
The business model of Rapido is mainly a B2C, business-to-customer model. This means that they offer their services directly to their customers as a business entity themselves.
How to start Rapido business?
To start a Rapido business:
- As a Rider – Register on the Rapido Captain app, upload documents, get approval, and start rides.
- Rapido Franchise – Contact Rapido, check requirements, sign an agreement, and earn commissions.
What was Rapido turnover 2024?
The operating revenue of Rapido increased by 46.3% to INR 648 crore from INR 443 crore in 2023.
How does Rapido work?
Rapido connects users with bike and auto riders for quick rides. Customers book via the app, riders accept, pick them up, and drop them at their location. Rapido earns through ride fees.
What is Rapido net worth in rupees?
As of October 2024, Rapido’s net worth was valued at Rs 6,800 crore.
What is Rapido walk feature?
Rapido doesn’t have a walk feature, but it offers bike, auto, and cab ride options.
What is Rapido owner name?
Aravind Sanka, Pavan Guntupalli, and Rishikesh SR are the founders of Rapido and the parent organization of Rapido is Roppen Transportation Services.
How to earn money from Rapido?
To earn from Rapido, become a “Rapido Captain” by registering on the app and using your bike for rides. You earn money from fares, plus bonuses and incentives based on your performance.
