The rising traffic in most of the cities these days has become an unavoidable problem. Getting stuck in traffic in today's metropolitan cities is one of the inescapable situations for one.
More often, there comes a time when you have to reach a destination but there is no way for you to do so. In such times, you are frustrated and worried while thinking of some miracle to happen. But thanks to new-age technological advancements and innovative minds, we have companies like Rapido to rescue us in these kinds of situations.
You will just have to install the app, and you will be able to travel anywhere within the city. Here's a look at the business model of the bike taxi service Rapido and how it makes money.
A Brief about Rapido
Rapido is an Indian bike taxi and logistics service provider headquartered in Bangalore, Karnataka. Formerly known as the theKarrier, the company was founded in 2015 by two IIT alumni and a PESU alumni - Aravind Sanka, Pavan Guntupalli, and SR Rishikesh.
Hero MotoCorp Chairman Pawan Munjal and former Google India vice-president Rajan Anandan are people who have stakes in Rapido. The company operates in almost 100+ cities and has 1 crore registered users.
Areas of Operation
Due to the increasing demand for Rapido, they have expanded their operations almost all over India. Some of the cities where Rapido operates are Coimbatore, Jalandhar, Patiala, Tirupati, Trichy, Kolkata, Udaipur, Amritsar, Bhubaneswar, Rohtak, Vishakapatnam, Sagar, Hyderabad, Gwalior and many more.
Key Product and Services
Rapido is a bike taxi service provider, but along with that they also have auto-rickshaw and third-party logistics services.
It was in 2020, after the Covid-19 breakout that the company decided to expand its services in logistics that will offer hyperlocal delivery for local businesses and e-commerce companies.
Following that year, Rapido decided to expand its Auto services in 11 additional Indian cities in the states of Rajasthan, Gujarat, Uttar Pradesh, Punjab, and Andhra Pradesh to name a few.
Rapido also offers a service called Rapido Corporate. It is an employee travel management for organisations. In this service, organisations need to partner up with them if they want to offer travel services to their employees.
Target Audience of Rapido
Rapido's target audience is mainly commuters who travel in their day-to-day lives. Its main goal is to offer services to commuters who are preferring open and safe commute options in comparison to over-expensive cab rides.
Business Model of Rapido
With a mission to provide easy access to bike services, Rapido's business model is mainly B2C (Business to Customer model). This means that they offer their services directly to their customers as a business entity themselves.
In addition to this, they have also leveraged vehicle storage options to provide carriage services. Moreover, the end receiver of their product and services are customers like us.
Their B2C model allows consumers to book a bike ride through their app. Customers, need to download the Rapido app, create a profile, and set pick-up and drop-location.
Upon successful booking, a driver known as the 'Captain' will be assigned with their details like name, photo, and other details. This gives assurance to customers regarding the driver with whom they are going to commute. Users can make payments either with cash or using a digital payment method.
For Captains, Rapido allows anyone with two-wheelers to register as Captains. They are free to choose whatever vehicle they want like motorcycles, scooters, or e-bikes, but cannot be older than 2010. They also need to have a phone with a 3G/4G mobile data connection.
Rapido encourages people within the age range of 18 to 50 years to be Captains. Presently, the company is looking out for more female captains to join their community.
What Makes Rapido Unique From Its Competitors?
- One of the most important things to look at in Rapido's services is its affordability. For daily commuters, Rapido seems to be the perfect mode of transport. At any time, either day or night, a traveller's trip is less expensive than most cab rides.
- They provide helmets for safety.
- The app has easy accessibility because it is available in five major languages.
- There is also a speed-tracking feature that lets the Captains know their speed.
- Rapido's business model offers insurance for both parties - the driver and the rider.
How Does Rapido Make Money?
Rapido makes money through its bike services and rental services. The company's revenue model is mainly of two categories:
Commission-basis means the company generates money by acting as an intermediary between the 'Captains' and the customer. They charge a fee of 20% of the entire fare.
The B2C commission-based
The other method through which Rapido earns money is through its B2C logistics services, Rapido Store. This is a major source of revenue as the company focuses on delivering the goods of logistics companies to their preferred location.
It is quite clear by looking at the business model of Rapido, that customers and drivers both benefit greatly. By always making constant app updates and improving the system, they wish to make their app user-friendly for every walk of life. They are soon going to launch special and simplified features for visually challenged people.
Since its inception in 2015, Rapido has come a long way. Day and night they are striving hard to be the solution for India's intra-city commuting problems. Rapido's bike services are a boon for anyone who wishes to reach their destination in a jiffy.
How does Rapido make money?
Rapido earns money by charging a fee of 20% of the entire fare. The company also earns from its logistics services.
Who are the founders of Rapido?
Aravind Sanka, Pavan Guntupalli, and Rishikesh SR founded Rapido in 2015.