Tag: rapido

  • The Marketing Strategy of Rapido: India’s Leading Bike-Taxi Service

    Rapido is one of India’s largest bike taxi services that gives people very affordable, fast, and hassle-free last-minute connectivity apps. The app itself is very user-friendly, and combined with a price factor makes its services extremely efficient in changing urban mobility.  

    Started by Aravind Sanka, Pavan Guntupalli, and Rishikesh SR in 2015, Rapido, which began its operations in Bangalore, has since expanded to more than 100 cities across India. In the micro-mobility space, where competition comes in from players like Ola, Uber, and Bounce, Rapido has still managed to establish a niche.

    By focusing on convenience, affordability, and local needs, Rapido has gained significant market share in the urban transport segment.

    In this article, let’s learn about Rapido’s marketing strategy that contributes to its rising success.

    Competitor analysis
    Marketing Mix of Rapido
    Marketing Strategy of Rapido
    Digital Marketing Strategy of Rapido
    Rapido’s Marketing Campaigns
    Future of Rapido

    Competitor analysis

    Rapido's Competitor : Ola and Uber
    Rapido’s Competitor : Ola and Uber

    Rapido operates in an extremely competitive market for urban mobility. It competes with large established ride-hailing platforms, local startups, and traditional transport options. The following are closer looks at the competitors:

    • Ola and Uber: These ride-hailing giants also offer bike taxis along with cabs and autos, hence customers can pick up according to their needs. Their brand and customer base are very strong which makes them a big competitor.
    • Bounce and Vogo: These bike-rental platforms provide self-ride options, targeting customers who prefer independence and flexibility. While they differ from Rapido’s driver-centric model, they tap into the same customer base for short-distance travel.
    • Public Transportation: Affordable and widely available options like buses, metros, and local trains are often the default choice for price-sensitive customers.
    • Local Auto-Rickshaws and Taxis: These alternatives provide convenience and are deeply embedded in local commuting habits. However, their inconsistent pricing and limited tech integration work in Rapido’s favor.

    Competitive Advantages of Rapido

    • Affordability: Rapido provides fares consistently lower than Ola and Uber, and thus, it always is the number one choice of budget-friendly users.
    • Last-Mile Connectivity: Trying to figure out short-distance travel is what Rapido has niche-ed into where traditional ride-hailing services are less efficient.
    • Localized Focus: Rapido’s marketing strategies cater to regional needs, including vernacular campaigns and city-specific offers.

    Rapido Success Story | Valuation | Funding | Unicorn | Business Model | Founders
    Rapido has entered the unicorn club by receiving $120 million in funding from Westbridge Capital in July 2024. Check out the full story here! Know more about it on Rapido Wiki.


    Marketing Mix of Rapido

    Product Strategy

    Rapido’s offerings are meticulously designed to tackle urban commuting challenges and diversify its service portfolio.

    • Bike taxi services provide connectivity in the last miles while saving the pocket of commuters traveling through congested urban areas.
    • Rapido Auto: It is a recently launched feature that allows booking directly in auto-rickshaws. It caters to people who have only short- to medium-distance travel preferences using this mode of transportation.
    • Logistics and Delivery Services: Rapido has ventured into hyperlocal delivery, collaborating with businesses to ensure fast and reliable delivery solutions.

    The company maintains high service standards through a structured onboarding process for its Captains, routine vehicle inspections, and a robust customer feedback system to enhance service quality.

    Price Strategy

    Rapido utilizes both penetration pricing as well as dynamic pricing in response to diverse segments of the marketplace:

    • Penetration pricing: It attracts its first-time users through discounted rides and promo codes to gain new customers and brand loyalty.
    • Dynamic Pricing: This is how fare adjustments, for instance, on-demand, traffic, and availability will ensure a balanced equilibrium of the fares between what is reasonable to the customer while making the platform profitable.

    Rapido also capitalizes on seasonal opportunities through special offers and promotions during festivals and holidays, thus encouraging higher ride volumes.

    Place Strategy

    Rapido, the company operating over 100 cities, focused on strategic spots in urban as well as semi-urban places:

    • Major cities like Delhi-NCR, Bangalore, Hyderabad, etc. act as a potential market for bike taxis as these provide a pragmatic alternative in the wake of traffic congestion.
    • Tier 3 Cities: Rapido will expand its presence in smaller cities to meet the growing demand for affordable, accessible transportation.
    • Hyperlocal Logistics: The brand has reached the e-commerce and food delivery sectors by strengthening its logistics network.

    Promotion Strategy

    Rapido’s promotional efforts effectively combine traditional and digital marketing to enhance brand visibility and customer engagement:

    • Referral Programs: Encouraging users to refer friends through incentives, which drives organic customer acquisition.
    • Localized Campaigns: City-specific promotions, such as discounted rides during festivals and local events, resonate with regional audiences.
    • Social Media Engagement: Active campaigns on platforms like Instagram and Facebook include influencer collaborations and user-generated content to amplify reach.
    • Strategic Partnerships: Collaborations with payment platforms like Paytm and PhonePe provide users with cashback offers, making rides more affordable.

    By leveraging these marketing mix components, Rapido continues to position itself as a leading, customer-focused urban mobility solution.


    Aravind Sanka: Co-founder of Rapido Revolutionizing Mobility | Biography | Education | Personal Life | Controversies | Investments |
    Explore how Aravind Sanka, Rapido’s co-founder, is transforming urban mobility in India with innovative solutions for transportation. Read more about Aravind Sanka’s education, career, investments, net worth, and more.


    Marketing Strategy of Rapido

    Rapido’s marketing strategy remains a customer-centric approach that advocates for innovative service offerings, expansion in local markets, and strong brand positioning. By the basis of this brand, user satisfaction is at the core- through transparent pricing, quick and reliable services, and loyalty incentives in terms of discounts and this strategy will result in retaining existing customers while also attracting new customers through seamless and cost-effective commuting experiences.

    In a bid to diversify its portfolio and cater to the changing needs of the market, Rapido has gone beyond traditional bike taxis. The company is integrating electric vehicles into its fleet, reducing operational costs while pushing the cause of sustainable transportation. This forward-thinking approach is in line with global trends toward greener mobility. Besides, Rapido Auto was introduced for users who require auto-rickshaws for longer rides, thus offering more flexibility and convenience.

    Localized growth is the other key enabler of this strategy at Rapido. The company localizes its offerings to regional needs, supports multiple languages in the app, and caters to diverse audiences. For example, festive discounts in certain cities additionally add to its appeal among local sensibilities. All these efforts reflect the commitment of Rapido to becoming a trusted mobility partner in big as well as small towns.

    With affordability, convenience, and being ‘eco-friendly, ‘ Rapido stands as the cheaper, easier alternative to other commutation methods that have long existed. Through solving urban transportation-related issues with a different solution approach, the brand is steadily claiming its own niche in India’s mobility sector.

    Digital Marketing Strategy of Rapido

    Rapido’s digital strategy is tailored to engage with urban, tech-savvy audiences through a mix of social media marketing, influencer collaborations, SEO-driven content, app-based engagement, partnership marketing, and data-driven personalization.

    Social Media Marketing

    Rapido actively uses platforms like Instagram, Facebook, and Twitter to connect with users. On Instagram and Facebook, the brand shares engaging content, including ride tips, safety measures, and promotional offers. User-generated campaigns, where customers share their #GoRapido stories, help amplify reach and foster community engagement. On Twitter, Rapido focuses on real-time customer support to build trust and resolve issues promptly. Hashtag campaigns like #RapidoRides and #SafeCommutes further boost brand visibility and engagement during promotions.

    Rapido Launches IPL Campaign with Ranveer Singh
    Rapido Launches IPL Campaign with Ranveer Singh

    Influencer Collaborations

    To expand its reach, Rapido collaborates with regional influencers, including YouTubers and Instagram personalities. These influencer partnerships highlight Rapido’s services, particularly in specific regions, making the brand relatable to diverse audiences. Influencers often share their experiences with Rapido, creating authentic endorsements that resonate with their followers.

    SEO and Content Marketing

    Rapido exploits the advantages of SEO and content marketing to assert itself as the leader in mobility solutions in cities. It creates content such as articles and blogs talking about urban commutability problems, solutions for traffic problems, and more environmentally friendly commute options. While using optimized terms such as “affordable bike taxi,” “bike delivery service,” and “last-mile connectivity” to find relevance on a search engine platform, it pulls in more users into its service through these platforms.

    App Engagement

    The Rapido app plays a central role in customer retention and engagement. Push notifications alert users about discounts, ride summaries, and exclusive offers, ensuring regular interaction with the platform. Loyalty programs and gamification elements, such as milestones for earning free rides, encourage users to remain active and committed to the brand.

    Partnership Marketing

    Rapido’s collaborations with fintech apps like Paytm and Google Pay, as well as food delivery platforms like Swiggy and Zomato, demonstrate a strategic approach to partnership marketing. These collaborations bundle services and cross-promote offerings, increasing user convenience while boosting brand awareness.

    Data-Driven Personalization

    Rapido utilizes AI-driven analytics to personalize the user experience. Recommendations for frequent destinations, preferred ride times, and tailored offers based on individual behavior make the platform more intuitive and user-friendly. High-frequency riders, for example, might receive exclusive discounts or incentives, ensuring their continued loyalty.

    Through its comprehensive marketing and digital strategies, Rapido effectively addresses the challenges of urban mobility while building a strong, tech-savvy brand presence in the Indian market.

    Rapido’s Marketing Campaigns

    Bike Wali Taxi, Sabse Saxi: This ad showed how Rapido Bike Taxis provided solutions for everyday commuters. Their 360-degree marketing campaign aimed at highlighting the new and cost-effective travel. 

    Rapido’s Campaign – Bike Wali Taxi, Sabse Saxi

    5 nahi toh 50: This campaign promised users an auto allocation within 5 minutes of searching. But the 50 came into play when Rapido could not find an auto, they would offer 50 coins as a reward. This customer-centric approach changed the commuting experience in Chennai, Bengaluru, Delhi, Mumbai, and Pune. 

    #NoStressSawari: The bike taxi platform launched its digital marketing campaign to highlight the struggles commuters face when traveling to work by train, bus, or shared auto. The campaign was made of three short films of 20 seconds each. The idea was to let people know that Rapido has bike taxis that offer convenient and affordable transportation.    

    Future of Rapido

    Being an innovative approach to solving the challenges of urban commuting and at the same time offering affordability, convenience, and customer satisfaction, Rapido has gained success. The brand diversified its offerings to customer preferences, now providing services such as Rapido Auto and electric vehicles, further solidifying its position as a reliable mobility partner. With localized expansion, multilingual application support, and local offers, this demonstrates the awareness of the region’s requirements. In Tier 1, Tier 2, and Tier 3 cities, it helps create an association for the brand. Thus, such customer-centric policies with a standardized quality of services and price transparency helped Rapido take its distinctive space in the Indian mobility market.

    Conclusion

    On the digital front, Rapido’s targeted social media campaigns, influencer collaborations, and robust app engagement strategies have elevated its visibility among urban, tech-savvy audiences. With the brand integrating seamlessly into customers’ daily lives, it leverages partnerships with fintech and food delivery platforms to increase convenience. The application of AI in Rapido for personalized recommendations and tailored offers demonstrates its commitment to innovation and user experience. In its continued growth and innovation, Rapido will lead the urban mobility sector and set new standards in sustainable, affordable, and tech-driven transportation solutions.


    Rapido Business Model | How Does Rapido Earn Money?
    Rapido is one of the leading bike taxi providers in India. Let’s understand the business model of Rapido and how it earns money.


    FAQs

    Who are the founders of Rapido?

    The founders of Rapido are Aravind Sanka, Pavan Guntupalli, and Rishikesh SR.

    When was Rapido started?

    Rapido was started in 2015.

    What marketing strategies did Rapido use for growth?

    Rapido has used a mix of strategies, including hyperlocal marketing, digital marketing, influencer marketing, and partnerships.

  • Rapido Plans to Extend Its Reach to 500 Cities

    Capital-rich transportation giant Rapido has revealed aspirations to grow from its existing presence in 120 locations to 500 nationwide. According to a statement from the firm, the growth plan will begin in February and be implemented progressively in several phases, with the goal of meeting the various transportation demands of its consumers. The startup’s initial rollout would focus on states like Karnataka, Gujarat, Tamil Nadu, West Bengal, and Rajasthan. After that, it would provide its services to other states, including Punjab, Haryana, Uttar Pradesh, and Uttarakhand. On the fringes of the 2025 Bharat Mobility Expo, the announcement was made. The schedule for carrying out the expansion plans is unclear, though. “Our expansion to 500 cities is a testament to our commitment to empowering individuals and building a more connected India,” said Pavan Guntupalli, cofounder of Rapido, adding that the platform has over 1.3 Cr captains (riders) earning over INR 15,000 Cr.

    Expansion Aligns With Recently Raised Funding

    After obtaining $200 million in its Series E fundraising round, led by current investor WestBridge Capital, which boosted the ride-hailing startup’s valuation to $1.1 billion, Rapido became a unicorn six months prior to the growth plan. Rapido claimed at the time that the investment will help the company grow its business throughout India. Rapido, which was founded in 2015 by Guntupalli, Rishikesh SR, and Aravind Sanka, mostly works in the auto and bike taxi industries. In December 2023, it launched a subscription model and entered the taxi services market. Additionally, it uses Rapido Local to provide peer-to-peer distribution services.

    Financial Dynamics of Rapido                                        

    According to the business, 3.6 million rides are made every day, and more than 200 million rides have been made in 120 locations so far. In the fiscal year 2023–2024 (FY24), Rapido’s operating revenue increased 46% year over year (YoY) to INR 648 Cr, while its net loss decreased 45% YoY to INR 371 Cr. The startup faces competition from established firms like Uber and Ola, as well as up-and-coming firms like Namma Yatri, which is supported by Google.

    Namma Yatri Has More Than One Crore Users

    Even as it expands into more recent Tier 2 and 3 cities, Uber’s rival Namma Yatri, an interoperable ride-hailing app on the government-backed Open Network for Digital Commerce (ONDC), has surpassed the milestone of 1 crore registered users. 7.49 crore journeys from various cities, including Bengaluru, Kolkata, Chennai, Kochi, Tumkuru, and other states, have been accomplished by the ride-hailing app. As a result, as of January 18, 2025, drivers earned a total of INR 1,206 crore. Beginning in Bengaluru in November 2022, Namma Yatri has spread to a number of states, including Tier II and Tier III cities like Asansol, Cuttack, Mysuru, Tumkuru, Siliguri, and Bhubaneswar.


    Droom Ventures into Car Rental with New Offering
    Droom introduces a new offering to step into the car rental industry, marking its latest move to diversify services.


  • Aravind Sanka: How Rapido’s Co-founder is Reshaping Urban Mobility in India

    Ever wondered how a simple idea can transform urban travel? Meet Aravind Sanka, one of the masterminds behind Rapido, India’s go-to bike taxi service, valued at $1.1 billion in 2024.

    A seed of an idea for what eventually became Rapido was likely sown in Aravind’s mind several years before the company was born. On X (formerly Twitter), the entrepreneur shared, “Back in the early days of work, I had realized that sharing a bike ride to work with my friend helped me save quite a bit of money, time, and effort. We beat the traffic every time and discovered shortcuts meant only for the bikes!” 

    Buckle up as we explore the twists and turns of his life and the lightbulb moment that sparked Rapido’s creation. It’s not just a success story; it’s a rollercoaster ride of innovation, perseverance, and a dash of entrepreneurial magic. 

    In this tell-all article, we’ll walk you through Sanka’s fascinating journey, from his early days to becoming a game-changer in the transport world.  

    Aravind Sanka – Biography 

    Name Aravind Sanka
    Born 31 January
    Education Bachelor of Technology (B. Tech) in Mechanical Engineering at IIT Bhubaneswar
    Occupation Entrepreneur
    Known for Co-founder of Rapido
    Website rapido.bike.com

    Aravind Sanka – Early Life 
    Aravind Sanka – Career 
    Aravind Sanka- Personal Life
    Aravind Sanka- Rapido
    Aravind Sanka – Investments 
    Aravind Sanka – Controversies
    Aravind Sanka – Awards and Recognitions 
    Aravind Sanka – Interesting Facts 

    Aravind Sanka – Early Life 

    Aravind Sanka - Early Life
    Aravind Sanka – Early Life

    Aravind Sanka hails from a small village, Tirur, in Andhra Pradesh. “I’d never tasted pizza till I came to IIT,” he once shared in an interview. 

    Grade 9 was a life-defining period when Aravind’s parents recommended that he move out of the village for better opportunities. It was then that Aravind heard of the term “IIT Coaching.” Little did he know then that this bold step would soon change the trajectory of his life.  Although he’d never aspired to be an entrepreneur, the stars seemed aligned in that direction. As the first batch of  IIT Bhubaneswar, Sanka was a part of many “firsts” – defining campus culture, organizing the first college fest and raising money for it, and finding his own mentors from other IITs like IIT Kharagpur. Later, almost serendipitously, he was to be one of the first batch of Flipkart hires. These experiences, in a way, gave him a taste of what it’s like to set up something from scratch.  


    Rapido Success Story | Valuation | Funding | Unicorn | Business Model | Founders
    Rapido has entered the unicorn club by receiving $120 million in funding from Westbridge Capital in July 2024. Check out the full story here! Know more about it on Rapido Wiki.


    Aravind Sanka – Career 

    Aravind completed his Bachelor of Technology (B.Tech) in mechanical engineering at IIT Bhubaneswar from 2008 – 2012. He also worked as a summer intern at Tata Motors for three months in 2011.

    After a brief stint at Flipkart as a Supply Chain Finance Business Partner, where he was involved in the financial planning and expansion of the logistics of Ekart, Sanka co-founded theKarrier in November 2015, with two other IIT alumni, Pavan Guntupalli, and SR Rishikesh. theKarrier was an intra-city truck and goods transport vehicle aggregator, which combined technology and a network of owners to connect drivers and customers in a hitherto unregulated industry.   

    When they launched Rapido, they knew they were up against Ola and Uber which had monopolized the market. But the trio were convinced that the masses in India couldn’t always afford to book a cab and needed rideshare.   

    Aravind Sanka- Personal Life

    Outside of work, Sanka is an enthusiastic footballer. In a LinkedIn post, he said, “I feel playing football and managing a company have more in common than what catches the eye. Both activities require identifying the key strengths of players and trusting them to deliver on them. Each one is empowered with responsibility and authority, and the team collectively works together to achieve the goal(s).” 

    An avid traveler and lifelong learner, on an Instagram post he shared “I truly believe that traveling is the best kind of learning. It makes you modest and prepares you for the world.”

    He also gives back to the entrepreneur community by sharing nuggets of wisdom for budding entrepreneurs. He talks about the importance of having a positive mindset and financial discipline when managing funds. Sankha also emphasizes having work experience before starting your own venture as a way to find networking opportunities and identify the best practices for your business. 


    Rapido Business Model | How Does Rapido Earn Money?
    Rapido is one of the leading bike taxi providers in India. Let’s understand the business model of Rapido and how it earns money.


    Aravind Sanka- Rapido

    Aravind Sanka- Rapido
    Aravind Sanka- Rapido

    Rapido pioneered the bike taxi concept in India in 2015, offering a faster and more cost-effective alternative to traditional taxis and auto-rickshaws for short distances.

    The service excels in providing last-mile transportation, addressing a critical gap in urban mobility, especially in congested areas and provides income opportunities for the thousands of bike owners who become “Captains” (drivers) on their platform.

    A user-friendly app allows for easy booking, real-time tracking, and cashless payments; this makes Rapido a convenient choice for riders. The company has placed an emphasis on safety with measures like helmet provision, speed limits, and thorough background checks for drivers. Rapido also potentially reduces traffic congestion and lowers carbon emissions compared to car-based services by promoting shared rides on two-wheelers.

    After the breakout of the COVID-19 pandemic, Rapido expanded its logistics operations, providing last-mile delivery of goods for local businesses and e-commerce companies. In October 2020, Rapido launched on-demand auto rickshaw hailing services.

    Rapido achieved unicorn status in January 2022 after raising $180 million in a funding round. Today, Rapido operates in over 100 Indian cities. The startup’s growth and operations have influenced discussions and policies around bike taxis in various Indian states, contributing to the evolving regulatory landscape for this sector.

    Aravind Sanka – Investments 

    Announced Date Organization Name Funding Round Money Raised
    July 26, 2022 Windo Seed Round – Windo $1.5M
    July 10, 2022 Exprto Live Seed Round – Exprto Live $50M
    April 12, 2022 iTribe Pre Seed Round – iTribe $1M
    June 24, 2021 Windo Seed Round – Windo $500K

    How Rapido Is Rapidly Beating Ola and Uber in India?
    While Ola and Uber were strong in urban metropolitan cities, Rapido decided to focus more on the needs of tier 2 and tier 3 cities with its bike taxi services.


    Aravind Sanka – Controversies

    In October 2018, several Rapido bikes were seized in Coimbatore as the company was operating without a permit from the transport department. The next year, in July 2019, Rapido’s operations across Tamil Nadu were banned by Madras High Court. The App Store removed the Rapido iOS application for violating local laws. 

    In December 2022, Rapido Co-Founder Aravind Sanka and Legal Advisor Shantanu Sharma were co-accused in a case registered by Pune city police for cheating the Maharashtra state government and the regional transport office (RTO) by operating illegal bike taxis and not paying relevant taxes.

    Aravind Sanka – Awards and Recognitions 

    • Startup of the Year 2021: Awarded at the Startup2021 Awards organized by BusinessEx Entrepreneur, and Franchise India.
    • 30 Under 30 award (Travel category): Awarded by HT City, Hindustan Times, for being one of the young achievers of 2021. 
    • Young Entrepreneur Award: Awarded at Business World Young Entrepreneur Award 2020. 
    • Mobility Startup of the Year: Awarded at the Entrepreneur Awards 2020.

    In Delhi, Rapido Will Move to Electric Bike-Taxis Next Year
    Arvind Sanka, the co-founder and chief executive officer (CEO) of the ride-hailing startup Rapido, has informed a media outlet that the company is investigating the possibility of converting its bike-taxi service in Delhi to an all-electric mode within the next year.


    Aravind Sanka – Interesting Facts 

    Aravind was possibly the first IITian from his small town in Andhra Pradesh.

    When Sanka and his co-founders decided to launch Rapido, they were close to raising Series A funding for theKarrier. Investors were keen to raise the next round. But behind the scenes, all three were in turmoil: they had growth but a sense of purpose was missing. The company pivoted from being B2B logistics (theKarrier) providers to B2C (Rapido) almost overnight.

    FAQ

    Who is the CEO of Rapido?

    The CEO of Rapido is Aravind Sanka.

    What is the education of Aravind Sanka?

    Aravind Sanka holds a degree in Mechanical Engineering from IIT Kharagpur.

    Who is the brand ambassador of Rapido?

    Rapido’s brand ambassadors are Ranveer Singh and Allu Arjun.

  • Prosus to Provide $60 Million Investment to Rapido

    According to reports, Dutch investment firm Prosus is nearing $60 million (INR 503 Cr) in funding for Indian ride-hailing unicorn Rapido through a combination of main and secondary share sales. According to insiders, Rapido’s current $200 million funding round will include this additional funding.

    The conditions of the agreement have reportedly already been decided, according to many media reports. “Prosus plans to invest $60 million in Rapido. Sources familiar with the development said, “The deal’s parameters have been finalised, and it will also allow early supporters to make partial departures.” Rapido’s Series E investment will come to an end with this $60 million round. The company’s present valuation is projected to remain unchanged despite the investment.

    Rapido Joining the Unicorn Club

    After last month’s revelation that Rapido had raised $200 million in Series E financing led by current investor WestBridge Capital, this new development is even more significant. With a $1.1 billion valuation, that round catapulted the Bengaluru-based business into the unicorn club.

    Rapido was established in 2015 by Aravind Sanka, Pavan Guntupalli, and Rishikesh SR. It provides bike taxis, auto rides, and most recently, cab services in a few locations. Furthermore, the platform uses Rapido Local to enable peer-to-peer delivery. The firm has raised approximately $625.75 million to date thanks to the support of a number of well-known investors over the years, including Swiggy, TVS Motor Company, and Shell Ventures.

    Rapido has encountered financial difficulties in spite of its expansion. The company saw a 50% year-over-year increase in net loss to INR 674.5 Cr in the fiscal year 2022-2023 (FY23). But compared to FY22, when it made INR 144.8 Cr, its operational revenue increased to INR 443 Cr.

    Prosus Expansion Plans in India

    As the Dutch investor has been increasing its presence in the Indian market, this new investment from Prosus arrives at a perfect time. It was recently revealed that Prosus is thinking about making a $30 million secondary investment in the hyperlocal services platform Urban Company, with Bessemer Venture Partners receiving a portion of the proceeds. Prosus demonstrated its continued dedication to India in August when it invested $350 Cr in Bluestone’s INR 900 Cr pre-IPO financing.

    The investor is also eager to profit from the foodtech giant Swiggy’s impending initial public offering (IPO), in which it intends to sell 11.8 Cr of shares as part of the offer for sale (OFS) component.

    About Prosus

    Prosus is one of the biggest technological investors and operators in the world, as well as a global consumer internet organisation. In areas like Europe, India, and Brazil, the group is concentrated on developing significant businesses in the online ads, payments & fintech, food delivery, and education technology sectors.

    It supports regional business owners that create worthwhile goods for over 2 billion consumers while fostering the development of their local communities. Prosus gives its employees the tools they need to advance their careers and learn new skills.


    Investment of $30 Million to Be Made by Prosus in Urban Company
    One of the biggest technology investors in the world, Prosus, is increasing its position in the home services platform Urban Company by almost double.


  • In Delhi, Rapido Will Move to Electric Bike-Taxis Next Year

    Arvind Sanka, the co-founder and chief executive officer (CEO) of the ride-hailing startup Rapido, has informed a media outlet that the company is investigating the possibility of converting its bike-taxi service in Delhi to an all-electric mode within the next year. This would be accomplished through partnerships with companies like as Zypp Electric and Gogoro.

    This change takes place at a time when the nation’s capital is making tremendous progress in the adoption of electric vehicles, which is backed by the state’s legislation regarding electric vehicles. Within the next year, the corporation plans to make the transition to using only electric vehicles in some cities. As an example, a company intends to launch this effort in Delhi to lessen the amount of pollution. Sanka stated that 25% of the company’s bike taxi services are already electric in Delhi and that it would gradually expand its operations to other states as well.

    First-mover Advantage

    As competitors like Ola and Uber experiment with environmentally friendly solutions, Rapido may also gain a first-mover advantage in the bike-taxi industry as a result of this transition.

    Zypp Electric and Gogoro are two of the fleet operators that the company collaborates with. Original equipment manufacturers (OEMs) are also involved. In Bengaluru, the company also has its own electric vehicle fleet consisting of three-wheeler automobiles. In the event that there are fleet operators, company purchases from them. According to Sanka, in the event that there are no electric vehicle operators in a city, firm provides the drivers with its very own electric vehicle.

    Promoting Sustainability

    There are also negotiations taking place between companies like Uber and manufacturers of electric two-wheelers regarding the transition to electric vehicle fleet services or the formation of partnerships in order to provide driver partners with vehicles at a reduced cost. On September 16, 2023, the ride-sharing company Ola Cabs made the announcement that it will be relaunching its bike taxi service in Bengaluru, all of which would be operated by electric scooters.

    Bhavish Aggarwal, the founder and chairman of Ola, stated that the company is willing to engage in collaboration with other local partners in order to acquire electric vehicles for the company. Currently, Ola Electric is the supplier of the company’s electric two-wheelers. At the same time as this is happening, a number of states, including Karnataka and Delhi National Capital Region, are expanding their regulations regarding bike taxis.

    A statement made by the government of Delhi in November 2023 that stated that it intended to electrify all bike taxis by the year 2030. A gradual transition to electric vehicles was permitted by the state government inside the fleets of taxi operators.


    Rapido Business Model | How Does Rapido Earn Money?
    Rapido is one of the leading bike taxi providers in India. Let’s understand the business model of Rapido and how it earns money.


  • How Rapido Is Rapidly Beating Ola and Uber in India?

    India’s mobility tech sector, while unorganised, has seen unprecedented growth in the last decade. This is largely due to inadequate public transport infrastructure and an increasing demand for convenience and affordability.

    In the coming years, the shared mobility sector is set to witness greater democratisation and reach nearly 15 crore users by 2025. With a deeper penetration into non-metro cities, the economy will receive a boost by creating a viable revenue-generating opportunity for more than 3 million drivers across various platforms.

    With year-on-year growth, the Indian market has evolved to add more categories. The Indian mobility market is growing in line with the global trend. However, there is some localisation like rapid traction for two-wheelers and three-wheelers as well.

    Post the Covid-19 pandemic, bikes and autos have seen rapid traction and are gaining share quickly within the wider market.

    What is Rapido? – The Initial Journey
    The Challenges Faced by Rapido
    The Revival and Growth of Rapido
    Rapido’s Monitoring and Support Systems
    Rapido’s Sustainability

    The Future of Bike Taxi | Rapido Case Study

    What is Rapido? – The Initial Journey

    Aravind Sanka was on the verge of closing his local startup ‘theKarrier’, frustrated with the increasing traffic and cost. It was his two friends, Pavan and Rishikesh who came up with the suggestion of using two-wheelers as a way to work around the Bangalore city traffic issue. This idea prompted them to study consumer behaviour within the city and Rapido was conceived.

    In 2015, Pavan Guntupalli, Rishikesh SR and Aravind Sanka founded Rapido, an online bike taxi aggregator. Based in Bangalore, its fundamental and operational ideology was to create something unique and distinct from Ola and Uber. The aggregator particularly focused on hiring drivers possessing two-wheelers and allowed them to register and verify the information with the company.

    Rapido understood the issues and problems posed due to increasing traffic. Time and cost would eventually increase for the customers. This insight allowed them to strategize and plan for successful motorcycle rides. Their slogan ‘Ride Solo’ amplifies their ideology of offering services that are dependable, convenient and economical. Their stipulation for their captain’s two wheeler-vehicles not being any older than 2010 showcases their care for safety.


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    The Challenges Faced by Rapido

    Within the first month of launching Rapido, it received more than 10,000 downloads and gained popularity quickly. However, Ola and Uber saw the rising popularity and launched their own services within the two-wheeler market as well. This proved to be a huge challenge for Rapido, as the market giants were cash rich and could very well outrun Rapido by undercutting their rides by a huge margin.

    Rapido’s funds were depleting and this prompted Aravind to pitch to investors. However, investors were wary about Rapido’s sustainability in view of Ola and Uber’s strong grasp on the market. By 2016, Rapido’s future was bleak and it was on the verge of closing its doors.

    The Revival and Growth of Rapido

    Indian Bike Taxi Market Forecast (2021-2030)
    Indian Bike Taxi Market Forecast (2021-2030)

    The CEO of Hero Honda Motor Corporation, Pawan Munjal realised the potential for the success of Rapido. He not only invested in Rapido but helped them strategize their growth plan and the road to reach it.

    While Ola and Uber were strong in urban, metropolitan cities, they were less focused on tier 2 and tier 3 cities. This is where Rapido turned their focus. They built a local ecosystem that was in line with the needs of tier 2 and tier 3 cities. They built a two-pronged approach:

    • Provide bike rides to daily commuters with no vehicles.
    • Provide riders to commuters with bikes and help build a secondary income model.

    This brilliant strategy took quick roots allowing Rapido to strengthen its presence and grow its market share.

    Rapido’s Monitoring and Support Systems

    Their Rider Motoring System (RMS) tracks all their rides including ensuring the riders possess all necessary documentation, their behaviour with customers and their adherence to speed limits. Their riders who have clocked the most number of rides are regularly rewarded. This keeps their motivation high to provide consistent and best services to customers. Where Rapido excels is in a concentrated feedback loop. Their network is smaller than Ola and Uber but is more focused on providing better services.


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    Rapido’s Sustainability

    Rapido’s business model is similar to Ola and Uber. In some cases, Ola and Uber are far more advanced, technologically. In a scenario like this, Rapido has not only maintained a profitable business model but built it to sustain itself. Their operational ease and robust support systems for their drivers are what makes the company a preferred place of work.

    1. Rapido built and maintained its reward structure for its drivers. This builds trust among its drivers and keeps the momentum high for servicing its customers. Unlike Ola and Uber, which had announced a reward system for their drivers but they have not kept it updated.
    2. Rapido’s withdrawal system is friendly to drivers, allowing them to withdraw their earnings on a weekly or even daily basis, as required. This is too, unlike Ola and Uber, which have an inflexible accounting system.

    Conclusion

    What Rapido has done is not so far out of imagination. They have merely taken a different and less populous route to success. Their journey is a classic example of simply going through a window when the door closes.

    Their keen observation allowed them to spot the existing opportunity and then grab it with both hands. What does their ideology teach? Concentrate on what is personal strength and build on it.

    FAQs

    How did Rapido fought Ola and Uber?

    While Ola and Uber were strong in urban metropolitan cities, they were less focused on tier 2 and tier 3 cities. So, Rapido built a local ecosystem that was in line with the needs of tier 2 and tier 3 cities. Rapido understood the issues people faced due to traffic and this allowed them to strategize and plan for successful motorcycle rides.

    Which is cheapest bike ride app?

    Some of the cheapest bike ride apps are:

    • Rapido Bike Taxi
    • Ola Bikes
    • UberMoto
    • Mopedo Bike Taxi

    How much does 1 km of Rapido cost?

    Rapido charges ₹35 for 2 km as a base price. After the 2 km distance, it charges ₹15 per km.