Rapido allows internet commuting to schedule bike rides from their present position to their desired place at a low cost and in the shortest amount of time.Its is India’s very first biggest bike taxi app, which has been a huge success.
Rapido, a Bengaluru-based firm, was among the first to enter the market. The firm, which was founded by three engineering graduates, Aravind Sanka, 28, Pavan Guntupalli, 28, and S.R. Rishikesh, 26, has received funding from Indian motorcycle manufacturer Hero Motorcorp’s Pawan Munjal.
Rapido has already raised $6 million in two fundraising rounds. According to the creators, the company generates $1.5 million in monthly sales and is profitable in several of the 16 locations where it operates. Rapido’s platform includes 15,000 bike “drivers” or “captains” and 30,000 daily trips. Since its launch in 2015, it has surpassed two million aggregate app downloads. It also receives 200,000 app downloads each month.
Rapido was developed with a certain thought in mind.
The three founders’ fundamental concept was to recruit individuals, particularly those who possessed two-wheelers. In addition, the founders intended to create something unique that was distinct from Ola and Uber in terms of vehicle investment. They planned to create an app similar to the Rapido Captain app that would allow two-wheeler owners to register and verify their information with the firm. They believed that Ola and Uber would never be cheap to everyone on a regular basis, and that traffic in major cities would only become worse. Therefore they devised a strategy to avoid some of the more obvious issues and plan for successful motorcycle journeys.
Profit-making model of Rapido
Rapido’s profit model is divided into two parts.
- First is dependent on commission. The firm generates money by acting as a link between the two – captains and passengers looking for a trip. The price charged by the firm is 20% of the entire fare.
- Another is a business-to-consumer commission. The firm makes money here by providing B2C logistics, namely by assisting logistics providers with the delivery of their goods.
Business strategy of Rapido
Customers may schedule a trip using the app, and a rider, known as a captain, will reach the specified location. The cost of each service is determined by the number of kilometres the user must go. Those interested in serving as captains must first enroll on the Rapido captain app and be verified by submitting the appropriate papers as outlined above. Captains are allowed to ride on scooters or motorbikes. However, there is one stipulation: the cars must be two-wheelers and must be no later than 2010.
Rapido Secures $52 Mn Funding
Rapido, a bike taxi platform, recently reported that it has raised $52 million from new investors including Shell Ventures, Yamaha, Kunal Shah of CRED, Amarjit Singh Batra of Spotify India, and Positive Moves Consulting. Existing investors Pawan Munjal of Hero Group, Westbridge, Nexus Venture, and Everblue Management continued to back the round.
Expansion of Rapido
The entrepreneurial firm is quickly expanding. Its financials reflect its expansion. In the previous year, the Bengaluru-based business claimed a 12.5x increase in sales. On the selling of mutual funds, the corporation received interest income and a capital gain. It hopes to reach a million clients every day, but now has 5,00,000 captains serving 10 million customers over 90 sites.
“We are committed to providing the country with an affordable, accessible and safe everyday commuting option. Today, Rapido is the largest bike taxi player in the country operating in around 100 cities. Even though our product and business model are lucrative and have the potential to churn out an exceptional revenue, this fundraising indicates more of the investors’ confidence in us than the need for capital. From 15 million users in the last two years, we now plan to increase that number to 50 million in the next 18 months and continue providing affordable transportation for the masses,” said Aravind Sanka, co-founder, Rapido.
Future aim of Rapido
The company’s aim is to preserve their software up to date while also introducing new and exciting features which make it more useful for both captains and users. The founders are also considering lowering the fees. Furthermore, they are aiming to add something new to their journeys that would help passengers to move quicker. In addition, they want to provide a subscription-based power pass to its regular clients. The goal is to reduce the cost of his/her rides.