For booking flights, buses, trains, and hotels, Rapido has partnered with Goibibo, owned by MakeMyTrip; ConfirmTkt, owned by ixigo; and redBus. Rapido aims to become a one-stop travel app, offering its 5 Cr active users from more than 400 cities nationwide a smooth mobility experience. Prior to a possible initial public offering (IPO), the ride-hailing company is working to diversify.
Unicorn that rides Rapido has partnered with Goibibo, owned by MakeMyTrip; ConfirmTkt, owned by ixigo; and redBus to provide hotel, bus, rail, and flight booking through its app. With these features, Rapido hopes to establish itself as a one-stop travel app, delivering its 5 Cr active users from more than 400 cities around the nation a smooth mobility experience.
Rapido claimed that by combining daily mobility and trip booking into a single app, it is well-positioned to onboard the next 10 Cr digital travellers. RedBus is an online bus ticketing platform for intercity bus reservations, whereas Goibibo offers hotel and airfare bookings. ConfirmTkt is a B2C online train ticketing platform that has been authorised.
Rapido Added New Travel Section in its App
Rapido has established a new “travel” section on its app’s home screen in order to accommodate the additional services. By utilising Rapido’s reach, Goibibo, ConfirmTkt, and redBus hope to increase their user base even more with this relationship.
Rapido’s continuing diversification strategy continues with this move. A full-fledged mobility app, the ride-hailing firm started off as a bike-taxi platform for short-distance urban commuting. Over time, it added car and taxi booking services to its main business of bike ride-hailing. In an attempt to compete with Zomato and Swiggy, Rapido also entered the food delivery market earlier this year with the introduction of Ownly.
Rapido Aiming to Become Multi-Service Platform
Rapido’s strategy change to become a multi-service platform instead of a single-category competitor is reflected in the diversification, which enables it to compete with both foodtech behemoths and significant ride-hailing companies. Rapido wants to increase app engagement and diversify its revenue sources by combining various offers into a single platform.
The most recent advancement coincides with Rapido’s goal of closing a $500–$550 million fundraising round. Swiggy’s stake sale would be one of several primary and secondary transactions that would take place during the round.
Although Rapido has not yet submitted its FY25 financial figures, the company is anticipated to generate over INR 1,000 Cr in revenue during the year. It reduced its loss from INR 675 Cr in the previous fiscal year to INR 370 Cr in FY24, a more than 45% reduction. Operating revenue increased from INR 443 Cr in FY23 to INR 648.1 Cr in FY24, a 46% increase.
Quick Shots
•Rapido now offers flight, hotel, bus, and
train bookings via partner integrations.
•Rapido Collaborated with Goibibo
(MakeMyTrip), ConfirmTkt (ixigo), and redBus.
•Rapido wants to become a one-stop travel
and mobility app for its 5 crore active users across 400+ cities.
•Rapido expands beyond bike-taxi roots to
car rides, taxis, food delivery (Ownly), and now travel services.
The Central Consumer Protection Authority (CCPA) has ordered Rapido (Roppen Transportation Services Pvt. Ltd.) to pay a penalty of INR 10 lakh for printing deceptive advertisements and engaging in unfair trade practices, in a move to defend consumer rights.
Misleading ‘Auto in 5 Min’ Promotion Explained
The Authority has additionally instructed the online ride-hailing platform to guarantee that any customer who used the “AUTO IN 5 MIN OR GET INR 50” promotion and did not obtain the promised INR 50 compensation will receive a complete reimbursement of the money without any further conditions or delays.
Consumer Complaints Against Rapido Surge
Rapido’s deceptive advertising, which promised customers “AUTO IN 5 MIN OR GET INR 50” and “Guaranteed Auto”, was brought to the attention of the CCPA. Following a thorough analysis, the CCPA determined that these commercials were unfair to consumers, untrue, and misleading. As a result, the CCPA ordered that the deceptive commercials be removed immediately.
Shocking Revelation by National Consumer Helpline (NCH)
Complaints
Against Rapido
•575 complaints against Rapido between
April 2023 and May 2024.
•1,224 complaints between June 2024
and July 2025.
According to the CCPA’s investigation, Rapido’s adverts featured the notice “T&C Apply” in an incredibly small and unreadable font. Even then, the reward was “up to INR 50” and not necessarily precisely INR 50. The promised INR 50 benefit was not actual currency (in rupees), but rather “Rapido coins”. These coins had a seven-day validity period and could only be used for Rapido bike rides. These limitations significantly diminished the offer’s value and essentially forced customers to switch to another Rapido service in an unreasonable amount of time.
Customers were deceived into selecting Rapido by these omissions, which gave the false sense of guaranteed service. Furthermore, the Terms and Conditions made clear that individual captains, not Rapido, were providing the guarantee, even though the advertisement made the bold claim, “Auto in 5 minutes or get INR 50.” By deceiving customers about the precise guarantee stated in the advertisement, this paradoxical position sought to shift responsibility away from the business.
What the Advertising Guidelines Say?
According to the Guidelines for Prevention of Misleading Advertising and Endorsements, 2022, advertising cannot utilise disclaimers to rectify a misleading claim, hide important facts, or contradict the main claim.
In Rapido’s case, the statements “Auto in 5 min or get INR 50” and “Guaranteed Auto” gave the idea that customers would always be charged ₹50 if the car was not delivered within 5 minutes.
Nevertheless, the important restriction that the benefit was limited to “up to INR 50” and only in the form of Rapido coins with a brief validity was either left out or not made as prominently known. The commercial was misleading due to its lack of clarity and concealment, which was a clear violation of the guidelines.
Quick
Shots
•Ads promised “AUTO IN 5 MIN OR GET
INR 50” and “Guaranteed Auto”, but compensation was unclear and misleading.
•Rapido directed to reimburse all
customers who were denied the promised INR 50 benefit.
•“T&C Apply” displayed in tiny,
unreadable font; compensation was Rapido coins, not actual money.
•Rapido coins valid for 7 days and
usable only for bike rides, reducing consumer value.
According to reports, the Maharashtra State Road Transport Corporation (MSRTC) will introduce a passenger app that is based on an aggregator and will provide transport services on a single platform.
One App, Multiple Rides: Buses, Autos, Taxis & E-Buses
According to PTI, the app would let users schedule rides for buses, autorickshaws, taxis, and e-buses. It is being developed under the aggregator policy of the federal and state governments. This statement was made earlier this week at a high-level meeting by state transport minister Pratap Sarnaik. The app would be called “Chhava Ride”, according to the report.
Revenue Opportunity for MSRTC Through Digital Transformation
According to various media reports, Sarnaik stated that the MSRTC was the most qualified entity to run the app, which is anticipated to create a new source of income for the transportation agency while offering passengers a reliable and open service.
State Cracks Down on Unlicensed Private Aggregators
Nearly a week has passed since the minister blasted the current private aggregators for taking advantage of both drivers and passengers. The state government of Maharashtra launched a crackdown on Uber Shuttle and other bus aggregators in mid-July for operating without the required licenses.
Policy Challenges for Ola, Uber, Rapido in Maharashtra
Additionally, when the federal government announced the Motor Vehicle Aggregator Guidelines (MVAG) 2025 earlier in July, it required ride-hailing aggregators to meet the goals set for the proportion of electric vehicles in their fleet.
Aggregator Cabs Policy 2025, which was passed by the Maharashtra government in May, stipulated that drivers who cancel rides would henceforth be required to pay a fee, which should then be promptly credited to the rider’s account.
Auto Unions and Local Startups Fill the Gap
In June, the software development firm Metazen Labs and the autorickshaw unions Seva Sarathi Autorickshaw Taxi & Transport Union (SSATTU) of Mumbai jointly released Yatri Mitra, a new auto booking app for commuters in Thane and Mumbai. Earlier this March, the Centre announced the launch of a new state-backed ride-hailing service dubbed “Sahkar Taxi,” which will compete with industry titans like Ola, Uber, and Rapido.
Regulatory Clash: Maharashtra Government vs Ride-Hailing Giants
The ride-hailing app Rapido recently applied for a licence to provide bike taxi services in the state from the local transport authority but was turned down. It then filed a challenge to the notification with the Bombay High Court (HC).
The company was ordered to cease its bike taxi services for operating without a licence by the HC, which also denied the petition. The state’s bike taxi policy has been in uncertainty ever since.
In the meantime, ride-hailing platform taxi drivers in Mumbai are still demonstrating in favour of quicker aggregator policy implementation and pay parity with traditional taxi drivers.
According to reports, the Maharashtra transport department has filed a lawsuit against bike taxi platforms for operating unlawfully in the Mumbai metropolitan area. The Maharashtra transport department reported to a news source that 123 bike taxi drivers operating in the area were the subject of complaints filed by regional transport offices (RTOs).
Out of this, 76 two-wheelers were seized in accordance with the Motor Vehicles Rules provisions. Twenty flying squads of RTOs from Mumbai, Thane, Vasai, Vashi, and Panvel carried out the activity during a drive.
The department allegedly claimed in a statement that the ride-hailing services that were the target of the action were operating unlawfully and without official approval.
According to the government, the inquiry showed that there were app-based bike taxi businesses operating all throughout the city. In addition to costing the government money, this also made passengers more concerned about their safety.
Transport Department Receives Numerous Complaints
Numerous complaints about the unlawful operation of bike taxis in the city are said to have prompted the crackdown. This almost immediately follows the release of a government resolution by the Maharashtra government that emphasised new regulations to control online aggregators and bike taxi companies in the state under the Motor Vehicles Act, 1988.
To provide such services, the Act requires the appropriate permits. This comes weeks after Pratap Sarnaik, the transport minister for Maharashtra, pretended to be a driver and discovered obvious flaws in the way the city of Mumbai’s bike taxi ban was being implemented.
According to reports, Sarnaik used Rapido to reserve a bike taxi in order to confirm a senior official’s assertion that the app and illicit bike taxi services were not working. Nevertheless, over the past two years, bike taxis have been prohibited throughout Maharashtra. The state government outlawed these services in January 2023 and instructed aggregators to apply for an operating licence.
Tug of War Between Maharashtra Government and Ride Hailing Platforms
The ride-hailing app Rapido recently applied for a licence to provide bike taxi services in the state from the local transport authority but was turned down. It then filed a challenge to the notification with the Bombay High Court (HC).
The company was ordered to cease its bike taxi services for operating without a licence by the HC, which also denied the petition. The state’s bike taxi policy has been in uncertainty ever since.
In the meantime, ride-hailing platform taxi drivers in Mumbai are still demonstrating in favour of quicker aggregator policy implementation and pay parity with traditional taxi drivers.
The Maharashtra government is once again targeting ride-hailing services like Uber, and this time for its bus service.
Pratap Sarnaik, the transport minister of Maharashtra, reportedly vowed a crackdown on Uber Shuttle and other aggregator bus operators for failing to obtain a government permit for the service, a week after he pretended to be a rider and discovered violations in Mumbai’s bike taxi prohibition.
According to a media outlet, the minister stated that severe measures would also be implemented against senior RTO officials who are in charge of “not taking action” against aggregator buses and bike taxis that are operating unlawfully in the city. In addition to Uber Shuttle, Cityflo, an aggregator bus operator, was also under governmental scrutiny for failing to get a permit.
“When I questioned RTO representatives, they informed me that they had sent notices to the bus aggregators and were awaiting a response. However, they ought to carry out raids, punish them, or terminate the services,” Sarnaik stated.
In the interest of commuters, he also emphasised the necessity of a policy for bus aggregators. He went on to say that in order to benefit a greater number of commuters, the government must create a policy for bus aggregators. However, permitting unlawful app-based bus operations has to be stopped.
Uber Shuttle May Disappear from the App
Following the news, Uber Shuttle services might be suspended and removed from the app, according to a media story that quoted sources. Many aggregator-controlled buses may stop operating out of concern for RTO action, according to a different article published by the daily on 10 July.
According to the report, more than 450 buses are run by bus aggregators like Cityflo, Uber Shuttle, and others in Mumbai. Rapido was found breaking Maharashtra’s bike taxi prohibition last week by the transport minister.
To confirm a senior official’s assertion that the app and illicit bike taxi services are non-operational, Sarnaik made a reservation for a bike taxi on Rapido in Mumbai on July 3 using a different identity.
In contrast to the assertion, a bike taxi driver arrived quickly to collect the minister from the designated pickup location. The driver was counselled by the minister upon his arrival over the unlawful service, but he was not prosecuted.
Tug of War Between Maharashtra Government and Rapido
The controversy around bike taxis began in January 2023 when Maharashtra outlawed them and ordered the platforms to apply for a licence to operate there. Rapido then applied for a licence to provide bike taxi services in the state from the local transport department but was turned down.
Following the department’s denial of the authorisation to function as a bike taxi aggregator, the ride-hailing app filed a challenge against the notification in the Bombay High Court. After learning that Rapido was operating without a permit, the HC also dismissed the aggregator’s request and ordered the business to halt its bike taxi services.
A proposal to let bike taxis operate in the state was accepted by the Maharashtra Cabinet in April. According to Sarnaik, the new policy, which intends to encourage EVs, will only permit electric bike taxis to operate on public highways.
The Maharashtra government published a gazette notice formalising the state’s bike taxi operating regulations following the July 3 incident. Aggregator platforms are required by the Maharashtra Bike Taxi Rules, 2025 notice to obtain a valid licence prior to providing bike-taxi services.
Ola, Uber, and Rapido are among the ride-hailing companies that will present a new set of arguments to the Central Board of Indirect Taxes and Customs (CBIC) regarding the controversial topic of whether the goods and services tax (GST) applies to services provided using the software as a service (SaaS) model.
Instead of paying gig workers a commission, platforms that use the SaaS model charge them a set monthly price. According to a media report, businesses are anticipated to highlight any ambiguities resulting from the SaaS model’s uneven tax treatment in light of conflicting decisions made by the Karnataka Authority for Advance Ruling (AAR).
They claimed that the Karnataka AAR’s ruling was skewing the industry’s competitive parity.
Karnataka Govt Not Providing Same Level Playing Field
The Karnataka AAR ruled that Uber and Rapido must pay the tax under the same scheme, even though it permitted ONDC-affiliated Namma Yatri to operate without imposing GST.
While Uber has implemented this concept for three-wheeler ride-hailing, Rapido uses it for its auto-rickshaw and four-wheeler ride-hailing services. Earlier this month, Ola Consumer extended its subscription model, which it had initially used for autorickshaws, to include four-wheeler taxi services.
According to a media report, some businesses have adopted a “no-tax position” regarding the subscription model, which results in inequity for players who pay taxes and charge commission.
The ride-hailing industry is a price-sensitive one, and those that use a subscription model wind up offering riders substantially cheaper fares. This disadvantages some businesses in the marketplace.
Subscription Model to Bypass GST
As per a media report, the decision to introduce subscription-based plans, in which platforms charge driver partners on their platforms a set daily or weekly cost for an unlimited number of trips, may enable businesses to avoid paying the 5% GST that is applied to journeys that they facilitate.
Section 9(5) of the Central GST Act, which requires e-commerce enterprises, including food delivery services, ride-hailing platforms, and online retailers, to collect and pay tax on behalf of service providers listed on their applications, applies the 5% GST. These consist of drivers, eateries, and online marketplace vendors.
The new arguments follow a recent direction from the Karnataka High Court requesting that CBIC consult with interested parties and make clear its position on the issue.
Due to uncertainty about whether a September 2023 advance tax ruling that held Namma Yatri need not collect and pay GST would also apply to other platforms, tax experts warned that companies using subscription models to avoid the 5% GST could potentially result in disputes between operators and tax authorities.
However, the Karnataka AAR declared in July 2024 that Rapido had to pay GST for its taxi services, and in November of the same year, it declared that Uber would also be required to pay tax for services that were introduced under the subscription model.
Several brokerages stated in separate notes that Rapido‘s entry into the food delivery market through a pilot in Bengaluru is unlikely to significantly upend the established duopoly of Zomato and Swiggy due to the business’s intrinsic operational complexity, capital intensity, and customer experience issues.
Bengaluru-based Rapido is getting ready to start its meal delivery service with a radically different price structure, opting for flat costs rather than the customary % commissions given to restaurants, according to a media report.
At a time when small restaurant operators are becoming more outspoken about growing aggregator expenses, the move put the ride-hailing company in a position to compete with Zomato and Swiggy.
For food orders under INR 400, Rapido will impose a set INR 25 fee; for orders beyond INR 400, the fee will be INR 50. The restaurant pays Rapido these fixed fees, which are subtracted from the order amount.
Rahul Malhotra of Bernstein, a premier global equity research and brokerage firm, pointed out that although Rapido intends to use its user base of more than 3 million to charge reduced take rates, new competitors have failed in the past. Malhotra pointed to earlier attempts by Ola, ONDC, and Amazon that didn’t scale because of a poor user experience, a fragmented supply, and a small range of restaurants.
Fragmented Food Delivery Market of India
With only about 10% of gross order value (GOV) coming from organised quick-service restaurants and the remainder from smaller eateries, India’s food delivery sector is fragmented, making it more difficult for entrants to reach scale.
Zomato and Swiggy, according to Bernstein, have already spent $2–3 billion developing their meal delivery networks and enjoy a large following of loyal customers. Swiggy had 252,000 active restaurant partners, while Zomato had over 314,000 as of Q4 Q4FY25. According to internal estimations, Bernstein estimated that Zomato and Swiggy held a 54% and 46% share of the meal delivery market, respectively.
Swiggy Leading the Race
Swiggy has been gaining market share in recent quarters. In Q4 Q4FY25, its food delivery GMV grew 18% year over year, surpassing Zomato’s 16% growth. The analysts said, “We do not anticipate material market share impact from Rapido’s entry,” noting that the service would initially be in a trial phase and would only be available in Bengaluru.
Bernstein stated that although Rapido might be able to attract previously unexplored eateries to its platform, especially those with low average order values (AOVs) in Tier 2 and Tier 3 cities, this will increase the market as a whole rather than reduce the number of customers that the incumbents have.
In a similar vein, HSBC referred to the current state of affairs as “déjà vu” for the food delivery sector, which had comparable anxieties during ONDC’s ascent in 2023.
The Bengaluru-based ride-hailing startup Rapido has started to test a feature that allows users to book non-air-conditioned cabs at lower rates. Currently available in beta form, the feature gives users the choice of fare plans for two types of cars, one with an AC and one without. Despite this being a first for any ride-hailing app, Rapido appears to be doing so quietly and without much fanfare.
The initiative emerges when numerous riders have been expressing their dissatisfaction online with drivers who won’t activate the AC, even though they’re charging more for trips. Rapido’s newest feature may provide a way to address both the complaints and the apparent service shortfalls they reflect by making the pricing of its rides align better with the kind of rides you’re getting.
Addressing Driver Concerns Through Innovation
In the month before last, drivers linked with the Telangana Gig and Platform Workers Union started a “No-AC” campaign in Hyderabad. They protested against the falling per-kilometer pay across the platforms Ola, Uber, and Rapido. The protest attempt highlighted the tension that’s always present between service expectations and the gig worker’s budget. Gig work is often said to be a means for working people to remain economically afloat. The reality is that many gig workers are laboring just to stay alive.
Rapido could be tackling both sides of the issue with its new non-AC option. This helps drivers avoid the expense of burning fossil fuels to power air conditioning, and it helps the price-sensitive commuter by providing a more affordable option. Integrating driver concerns into platform features may set Rapido on a path toward more inclusive innovation in the gig economy.
Aggressive Expansion Backed by Strong Metrics
Founded in 2015, Rapido built its user base initially through bike taxis and auto-rickshaws and expanded into the cab segment in December 2023. It was on a rapid growth trajectory. In March 2025, the platform outpaced rivals Ola and Uber in app downloads.
The company cut its FY24 losses to just over INR 370 crore, a reduction of 45 percent, while its operating revenue soared by 1.5 times to INR 648.1 crore.
Future Plans Point to Broader Ambitions
In keeping with its ambitious growth, Rapido is said to be looking to raise 250 crore rupees from Prosus to fund further expansion and other new initiatives. The company has said it plans to expand to 500 cities, has made proposals to set up a women-only “Pink” bike service in Karnataka, and has dropped hints about entering the food delivery sector in order to compete with much bigger players.
Non-AC cabs refine what Rapido has to offer Indian riders, allow Rapido to better compete in India’s ride-hailing market, and make Rapido more relevant to a service that Indian riders can actually use.
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.
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.
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 Auto
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.
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.
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 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.
More than a year after rival Rapido extended its subscription fee-based strategy to vehicles, ride-hailing service provider Uber has introduced a software-as-a-service (SaaS)-based zero commission model for drivers throughout India.
According to a notice on the app, Uber will only serve as a technological platform that links passengers and independent driver partners as of February 18. It further stated that it will not offer any kind of transportation. An Uber representative informed a media outlet, “The company has decided to align its approach accordingly in order to avoid being at a competitive disadvantage, given the industry’s shift towards a subscription-based model for drivers.”
New Business Strategy by Uber
Only the fare for a journey will be suggested by the Uber app; the rider and driver will have to negotiate the final price. The corporation will no longer be in charge of the rides’ quality, execution, or completion. The rules also stated that the business would not be held responsible for any ride cancellations made by drivers or their refusal to offer transportation services at any time.
Last April, the massive ride-hailing company tested a subscription-based scheme for drivers of autorickshaws on its network. Uber launched the service in six locations, starting with Visakhapatnam, Chennai, and Kochi. It is important to note that over the years, drivers have frequently gone on strike against ride-hailing services like Uber and Ola because of the commissions these companies charge. In the meantime, this has also led to a deluge of client complaints over service problems on social media.
Mobility will be Redefined by Ride-Hailing Trends in 2025
Nowadays, consumers have many options and are discriminating. The primary differentiation for standing out from the competition and optimising the customer experience will be customer centricity. Despite its ability to facilitate customer happiness, technology is merely a tool for improving the customer experience. Therefore, brands that give customers more control over the car, price, and driver instead of relying only on technology to decide these factors will have an advantage over their rivals.
Ride-hailing has emerged as a popular freelance option as hybrid employment models and a desire for flexibility gain traction. In order to become a popular job marketplace, many ride-hailing businesses are now including health and leave benefits in their drivers’ contracts.
A research study released by a well-known media company states that in 2025, businesses would place a greater emphasis on underdeveloped suburban markets and Tier 2 and Tier 3 cities by making partnerships and infrastructure investments in these areas. Rapid technical and infrastructure development, a large consumer base, and inadequate public transit infrastructures all point to the growth of ride-hailing companies in these locations.
