Rapido Business Model & Revenue Streams – How it Redefines Urban Transportation

Rapido is a prominent name in India when it comes to the taxi booking business. From its inception, it has made a remarkable impact in terms of capturing customer attention and making profits. Behind any business’s success, the secret lies not just in the execution but in a solid business plan. The Rapido business model has been carefully crafted to achieve excellent outcomes and dominate the Indian transportation market.

Rapido not only provides bike sharing but also offers a diverse range of services, including taxi, auto, and delivery. Entrepreneurs entering the on-demand taxi booking business must understand its business model thoroughly and apply its best practices to achieve the desired results.

Discover the facts and the inspiring story of how Rapido was founded. Moreover, understand how Rapido works and explore its revenue streams.

Inspiring Rapido Business History & Backstory

As per recent taxi booking market statistics, the industry is rapidly expanding with multiple major players across the world, and Rapido is one of them. Let’s understand its history and backstory.

Year – 2015

Headquarters – Bangalore, Karnataka, India

Founders – Pavan Guntupalli, Aravind Sanka, Rishikesh SR

Total Funding – $529M over 12 rounds

Recent Investors – WestBridge Capital, Nexus Venture Partners

Coverage Area – 100+ Cities across India

Every groundbreaking business idea begins with a problem, and Rapido’s journey is no different.

Before revolutionizing the way India commutes, Pavan Guntupalli, the founder of Rapido, went through his fair share of failed startups. Who would have thought that, once faced with several setbacks, the founder would transform the way people travel across India?

Previously, Rapido’s founders had a logistics startup, Karrier, which partnered with major e-commerce companies, including Flipkart and Delhivery. With this, they have already gained valuable experience and knowledge, bringing a new wave of transformation to the Indian market.

One fine day, they stumbled upon an idea that had the potential to transform the Indian transportation industry. They identified the problem that, in India’s traffic-choked cities, commuting was a never-ending challenge. Cars moved at a snail’s pace, public transport was overcrowded, and cab rides were often expensive.

However, there is one mode of transport that can weave through congestion effortlessly, and that is undoubtedly bicycles. They are fast, affordable, and easily accessible.

The fact that no one had tapped into the on-demand bike ride business until 2015 gave them a first-mover advantage. While giants like Ola and Uber existed in the on-demand taxi booking industry, fortunately, the two-wheeler bike segment was untouched by them.

That gap in the market became a beneficial opportunity for Rapido. With a vision to offer a faster, budget-friendly, and more convenient way to travel, Rapido was born. What started as a simple idea soon evolved into India’s largest on-demand bike and taxi service, transforming the way millions of people moved around cities.

Initially, Rapido began as a bike-sharing platform, providing convenient services to individuals. Gradually, its service types were expanded to include taxi services, and now it also offers courier delivery.

Overview of Rapido’s Competitors

Several key players in the ride-hailing industry give Rapido tough competition, each striving to capture customer attention with different approaches. Let’s find out the major competitors from the points mentioned below.

Ola – It is a prominent name in the on-demand mobility services industry, offering taxis, Ola Bikes, and Ola Auto. Ola was founded in India in 2010 by Bhavish Aggarwal and Ankit Bhati. Lucrative strategies and a beneficial revenue model also back the Ola business model.

Uber – Founded in 2013, Uber India has become a cutthroat competition for Rapido since Uber provides Uber Auto, Uber Cabs, and Uber Moto. Initially, Uber predominantly operated in the metro cities of India. The Uber business model also gives an exceptional insight into starting a taxi business.

Yulu – It was founded in 2017 and provides EV bikes across major cities in India, such as Bengaluru, Mumbai, Navi Mumbai, Delhi, Gurugram, Noida, and Hyderabad. Yulu primarily focuses on sustainable methods of traveling by providing electric vehicles. It has also partnered with major corporations to increase EVs in India.

Rapido Business Model – The Core Strategy Behind the Phenomenal Success

Let’s find out the comprehensive Rapido business model. Explore what kind of approach made them succeed in the taxi booking business market.

Key Partners Involved in the Rapido Business

Customers

For Rapido, customers are the riders who use on-demand bike and auto-rickshaw services for their daily or occasional commute across the city.

Drivers

Drivers become the service provider for businesses that want an extra source of income by driving a taxi, auto rickshaw, or bike.

Partners

Partners are the ones who own vehicles and lend them to the business, contributing as resource allocators and getting their share as vehicle providers.

Dispatchers

Dispatchers help businesses streamline fleet management and assign rides to drivers to ensure customer satisfaction and coordination.

Investors

Investors are the ones who provide financial backing to the business in return for shares, equity, or any other benefit.

Unique Value Proposition of the Rapido Business

Value Proposition for Customers

• Customers can benefit from the quick way to commute that helps them cut through the traffic and doesn’t burn their pockets
• They get to choose from various service types, such as bikes, taxis, and auto rickshaws, as per their budget and preference
• Customers can get a Rapido auto in just a short span of 5 minutes, saving them time and effort
• Safe and insurance-backed rides, putting security at the forefront
• Seamless and direct payments through QR code or wallet

Value Proposition for Drivers

• Referral program for drivers that allows them to accumulate points and earn an extra amount of money
• The 24/7 support provides them with instant assistance with their queries and enhances satisfaction
• Flexible working hours offer the convenience of working at the preferred time, effectively managing their chores

Key Activities Involved in Managing the Business

• Finding an ideal on-demand app provider and creating an app that resonates with the target audience
• Consistently maintain and update the app to align with current market demand
• Integrating customer-centric features for acquisition and retention
• Establishing a seamless payment process for streamlining finances and creating a hassle-free experience for customers
• Hiring and managing the driver workforce to effectively operate fleets

Rapido Revenue Streams – Explore How it Earns Money

A steady and powerful source of income is what makes businesses successful for a long period. Let’s explore how Rapido earns money through its various revenue streams.

SaaS-Based Zero-Commission Model

As per the reports of Business Standards, the auto drivers of Rapido do not need to pay a commission. Instead, drivers are bound to pay a particular amount of daily login fees. That means they earn the full ride fare directly from the customers.

For drivers, it leads to a better flow of income since they keep 100% of the amount paid by customers. On the other hand, Rapido’s business creates a predictable and consistent flow of money, unlike ride’s volume-based income. So, irrespective of the daily rides drivers perform, the company gets a fixed fee.

Advertising & Partnership

Rapido allows businesses to run ads on their dedicated platform or app. So, apart from the driver fees as per their zero commission mode, advertising becomes another source of income for them. Since Rapido has acquired a larger customer segment across India, brands need to pay in order to display their ads on the Rapido customer app.

Delivery Service

Apart from the taxi booking and on-demand bike service, Rapido has diversified its service type and revenue streams by starting courier/parcel delivery services. They earn by charging fees for each parcel delivered through their platform.

Marketing Strategies of Rapido That Entrepreneurs Must Know

As per our digital marketing statistics report, customer retention is likely to increase when the brand is present on various digital channels. Rapido also has a presence on various digital channels to enhance its marketing strategies. Let’s uncover how it leverages ads to get customer attention and revenue.

Targeted Ads

Rapido prominently runs targeted ads on Facebook and Google. Targeted ads help them get new customers through data-driven targeting. These ads can be shown to customers based on demographics, interests, and behavior.

Print Media

Since the competitors of Rapido, Ola, and Uber had strong market penetration in metro cities, Rapido decided to focus on Tier 2 and Tier 3 cities first. Although they majorly rely on digital ads, print media has also been on their plates. They place ads in magazines, newspapers, and hoardings, trying to capture the market of tier 2 and tier 3 cities.

Social Media Marketing

Social media has a tremendous user base, with over 5.07 billion people worldwide using it. Rapido has a widespread presence on various social media channels, such as Instagram and Facebook. Their following number is remarkable, with 130k followers on Facebook and 82.8k followers on Instagram.

How Can Elluminati Help You Establish a Rapido Like Business?

Elluminati is a software development company with a successful record of global clients. We build on-demand solutions for businesses, providing exceptional platforms and dedicated apps. With a record of over 800+ projects, our team is equipped with the knowledge and expertise to deliver fantastic outcomes.

Reach Out to Us – Once you reach out to us, you will get a detailed demo of our on-demand taxi booking platform. Then, our team will thoroughly understand your unique business requirements and target audience.

Create a Personalized Platform – We then create a personalized solution to turn your business ideas into reality. You can customize our white label solution with your preferred elements, features, and more.

Launch & Support – Our team will ensure a smooth launch with extensive support. We will work closely with you to ensure efficient coordination, support, and launch. Whether it’s customization requirements, other queries, or feature integration, we have got your back!

Conclusion

We hope the Rapido business model and revenue stream explained are helpful enough to start your ride-hailing business. With the right approach and strategies, you can also tap into this growing industry. Our experts will help you build robust, feature-rich solutions tailored to your target audience. Connect with us to create a Rapido clone app to outshine competitors and drive success.