RAPIDO- 'Success that trends 2024'

Let’s dive deep into its insights, to understand better the key factors that contributed to its success, and its unique selling proposition (USP).

​

1. Bike-taxi model and Innovation

​

What makes Rapido unique? well, none other than its business model is bike-taxi services, an innovation that prioritizes their customer comfort and pockets more than its profit.

​

Bike-taxi Service: By using bikes instead of cars, Rapido can reduce travel time and costs, offering commuters a faster and more affordable mode of transport in congested cities.

​

Delivery Services: Besides regular rides, Rapido has also ventured into parcel delivery and food delivery, increasing its customer base and providing more services.

​

Strategic Partnerships:  The company has partnered with various brands to expand its service offering and user base.

​

2. Pocket-friendly prices

​

One of the key factors behind Rapido's popularity is its affordable pricing structure. In comparison to other ride-hailing platforms like Ola and Uber, Rapido offers a lower fare model, especially in urban areas where people are highly price-sensitive. Rapido’s pricing model is highly attractive to budget-conscious commuters, and the company often runs discounts and offers to further reduce costs.

​

3. Technology and App Efficiency

​

Rapido has heavily invested in technology to enhance the customer experience. The app is user-friendly, easy to navigate, and optimized for low-bandwidth areas, which is critical in India’s diverse infrastructure.

​

Real-Time Tracking: The app allows users to track their rides in real time, ensuring greater convenience and safety.

​

Driver & Passenger Safety: In response to safety concerns, Rapido has introduced features such as insurance for riders and emergency SOS alerts, ensuring the safety of both drivers and passengers.

​

4. Low Operating Costs

​

Unlike car-based taxi services, Rapido's low operating costs (due to bikes being more fuel-efficient and requiring less maintenance) allow it to offer competitive pricing while maintaining profitability.

​

Efficiency in Service Delivery: The bike-taxi model allows Rapido to be operational in areas with high traffic, where cars would typically struggle. This gives them a competitive edge in cities with infrastructure challenges.

​

5. Strong Expansion Strategy

​

Rapido has been successful in rapidly scaling its services across India. As of 2024, Rapido operates in over 100 cities in India, and it has expanded its presence in smaller towns as well, tapping into under-served markets that traditional cabs or other ride-sharing services often ignore.

​

Tier-2 and Tier-3 Cities: Rapido has been able to cater to a broad demographic by expanding its services to tier-2 and tier-3 cities, where traditional car-based services like Uber and Ola are not as widespread.

​

6. Community and Driver Partnerships

​

Rapido has formed strong relationships with its drivers by providing them with flexible working hours, competitive pay, and a platform to improve their earning potential. It also has a driver loyalty program that incentivizes long-term commitment from its partners.

​

Earnings Potential for Drivers: With Rapido, drivers can earn more due to the high demand for bike-based transportation. The company provides them with easy access to vehicles and infrastructure, further driving the success of the business model.

 

7. Differentiation through USP (Unique Selling Proposition)

​

Rapido’s USP lies in its unique approach to urban transportation. Some of the key points are:

​

Speed and Accessibility: Rapido’s bike-taxi service offers a faster alternative compared to traditional taxis in crowded cities, allowing riders to skip traffic jams.

​

Low-Cost Transport: The affordability of the service appeals to a broad range of customers, from college students to office-goers.

​

Variety of Services: The expansion into food delivery and parcel delivery has diversified the company’s offerings, making it a multi-service platform.

​

Environmental Sustainability: With the growing focus on sustainability, bike taxis are more eco-friendly compared to traditional cars, which also aligns with the global push for cleaner, greener transportation.

​

​​

Multiple Funding Rounds and Investor Confidence

 

Rapido has raised substantial funding through multiple rounds, demonstrating strong investor confidence in its business model and growth potential. The company has successfully attracted investment from both domestic and international venture capitalists, which has enabled it to scale rapidly across cities and diversify its services.

​

Glimpse on funding rounds to get a crystal clear picture of how Rapido crowned a success,

​

• 2020 Series B Round: In 2020, Rapido raised $22 million in its Series B funding round led by Shell Ventures, We Founder Circle, and Lightspeed India Partners. This round was pivotal as it allowed Rapido to enhance its app technology, expand its fleet, and build its customer base across new cities.

​

• 2022 Series C Round: In 2022, Rapido raised another $52 million in its Series C round, with participation from BNP Paribas, Jungle Ventures, IIFL, and eVentures India. This funding was aimed at expanding its bike-taxi and delivery services, improving safety features, and further developing its multi-service platform.

​

• Impact of Funding: These investments allowed Rapido to expand to over 100+ cities, strengthen its technological infrastructure, and make critical operational improvements.

​

2. Strategic Allocation of Funds to Fuel Expansion and Diversification

​

Rapido has been strategic in utilizing the funds it has raised, focusing on key areas like geographic expansion, customer acquisition, and introducing new services (such as food delivery and parcel delivery).

​

• Geographic Expansion: A significant portion of the funding has been directed toward expanding Rapido’s operations to tier-1 cities like Delhi, Bengaluru, and Mumbai, as well as tier-2 and tier-3 cities. In 2024, Rapido operates in over 100 cities, and its presence in smaller towns has given it a competitive edge over traditional ride-hailing services like Uber and Ola.

​

• Tech Development: Another key use of the funds was to strengthen its technology infrastructure. This includes improving its mobile app’s user experience, building safety features (e.g., SOS alerts, ride tracking, and insurance for riders), and optimizing routes for faster delivery.

​

• Diversification into Delivery: With the funds raised, Rapido has expanded into the hyperlocal delivery space, offering services such as Rapido Food, Rapido Delivery, and Rapido Goods. The company capitalized on the growing demand for e-commerce and food delivery, especially during the COVID-19 pandemic.

​

• Data Point: In 2023, Rapido claimed to have more than 20 million downloads on Google Play Store, indicating a successful user acquisition strategy.

​

3. Impressive Revenue Growth and Financial Impact

​

Rapido's ability to secure repeated funding has contributed directly to its revenue growth. It has effectively utilized the capital to scale its services, acquire new customers, and build a diversified revenue model, which now includes not only ride-hailing but also delivery and other logistics services.

​

• Revenue Diversification: Initially, Rapido focused primarily on bike-taxi services. However, with funding support, it diversified into hyperlocal delivery services, which contributed to a broader revenue stream. In addition, Rapido has partnerships with various brands to provide exclusive transportation and delivery services, increasing its revenue potential.

​

• 2023 Growth Numbers: Rapido’s gross merchandise value (GMV) reportedly surpassed ₹1,000 crore (~$120 million) in 2023. This was largely due to the scale of its operations and the surge in demand for bike-based transport and delivery during and after the pandemic.

​

• Financial Sustainability: While specific profit margins are not publicly disclosed, the company’s ability to scale in both ride-hailing and delivery has positioned it as a leader in the affordable urban transport sector. Moreover, its low-cost operating model (due to using bikes instead of cars) allows Rapido to maintain profitability even in highly competitive markets.

​​

​

Rapido's success in raising funds multiple times has played a crucial role in its rapid growth and market penetration.

 

Furthermore, it still has a large scale to capture and hold the market to grow.

 

Time to put a light on its upcoming plans to achieve the big goal of victory,

​

​

Rapido: Wide Perspective to Grow (2024-2029)

 

​

Prospective Year (2024-2029):

​

​

Sector 1 - Geographic Expansion

​

• Domestic: Aggressive expansion into tier-2, tier-3 cities, and rural areas. Targeting 200+ cities by 2029 (currently operational in ~100 cities).

​

• International: Pilot expansion into similar markets (Southeast Asia, Africa) where two-wheeler transportation is a key mobility solution.

 

Sector 2 - Service Diversification

​

• Vehicle Offerings: Introducing auto-rickshaws and car ride-hailing services,  capitalizing on growing urban mobility needs.

​

• Last-Mile Delivery: Scaling up Rapido's delivery services for e-commerce, groceries, and food, expecting significant revenue growth from this segment (current delivery contribution is around 15-20%).

​

Sector 3 - Technology & AI Integration

​

• Route Optimization & Safety: Investment in AI and machine learning to optimize driver routes, reduce costs, and improve rider safety (smart helmets, real-time tracking, emergency alerts).

​

• Data Analytics: Enhanced customer personalization, dynamic pricing, and loyalty programs.

 

Sector 4 - Sustainability

​

• Electric Vehicles (EVs): Transition to electric bikes and possibly electric cars to align with India’s carbon reduction goals. EV integration is expected to account for 10-15% of the fleet by 2029.

​

• Green Partnerships: Collaborations with EV infrastructure providers to support a sustainable transport ecosystem

​

​

Therefore, success never comes easy, as Rapido’s journey shows. It needs deep analysis and strong strategies to stay unshakable in the challenges.

​

Their adaptable nature and critical thinking give the company desirable success with a stable future and low risk.

​

Learn more about the top Unicorns of the nation with Leadpreneurs 

​

Poornima Singh!

​

Interested in more such articles? What’s stopping you, stay connected with https://www.leadpreneurs.in/ and beat everyone with your updated knowledge with us.

​

Thank you!

​

​

​