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.
Nitin Konde
