Rapido, an eight-year-old Indian bike taxi startup, is making a bold move by venturing into the cab market in India. In this expansion, they aim to compete with established ride-hailing giants like Uber and Ola. The company has initiated a pilot program for its cab service in Hyderabad, a prominent city in southern India. Their ambitious plan includes expanding this service to other major cities like Delhi-NCR, Bengaluru, and Chandigarh in the near future, with the Delhi-NCR launch expected as early as the coming week.
Diversification Strategy
Until now, Rapido has predominantly offered motorbike and auto-rickshaw rides to its customers. With the introduction of cab services, the startup is diversifying its offerings, enhancing convenience, and ultimately aiming to broaden its customer base. The move is strategically designed not only to grow its user community but also to improve customer loyalty. By offering cars alongside motorbikes, Rapido creates a one-stop solution for customers who may have previously turned to Uber when needing a car ride.
Rapido’s spokesperson has conveyed their enthusiasm for the positive response to the cab service’s test run in Hyderabad. They describe the city’s market as vibrant and its reception of Rapido’s new offering as truly heartening. The company is eager to bring this innovative service to other cities, signaling its strong commitment to growth and expansion.
Expanding Horizons: Partnerships and Collaborations
Apart from the cab venture, Rapido is also exploring opportunities in the intercity bus ticket booking segment. This move is being made through a prospective partnership with Zingbus, an intercity bus service provider. The integration of bus ticket booking into Rapido’s app is seen as a strategic step to elevate the gross merchandise value of their platform and to assist Gurugram-based Zingbus in expanding its customer base. While this partnership appears promising, Rapido and Zingbus have not officially confirmed the collaboration at this point.
Rapido’s Impressive Journey
Established in 2015, Rapido has made a significant mark in the Indian ride-hailing market. Operating in over 100 cities across the country, they have secured more than 25 million app downloads and serve over 10 million customers. Their impressive track record includes facilitating a staggering 100 million rides. The startup’s reputation is underscored by its extensive reach and user base, highlighting its strong position in the industry.
Changing Dynamics in India’s Ride-Hailing Market
For a considerable time, India’s ride-hailing sector was characterized by a duopoly, with Uber and Ola jointly dominating 90% of the market. However, the landscape is evolving, particularly in recent months. Local players like BluSmart, offering an all-electric fleet, and inDrive, a company with a unique haggling model, are introducing new dynamics to the industry.
The Appeal of Bike Taxis
The distinct nature of India’s population, marked by price sensitivity, has led ride-hailing companies to experiment with bike taxis in major cities. Rapido has emerged as a strong contender in this segment, leveraging its expansive network. The startup proudly claims to have over a million bike drivers on its platform. Their core focus is to offer affordable intra-city travel and last-mile connectivity.
Regulatory Challenges in the Bike Taxi Segment
Despite the growth in the bike taxi sector, regulatory challenges loom large. Varying rules and regulations in different Indian states make it difficult for platforms like Rapido to predict their growth trajectory with certainty.
Impressive Investment Journey
According to data from Tracxn, Rapido has raised a total of $324 million. Their most recent funding round, amounting to $180 million, was announced in April of the previous year. The startup’s investor lineup includes esteemed venture capital firms such as WestBridge, Shell Ventures, Nexus Venture Partners, and AdvantEdge. Additionally, they enjoy support from Swiggy, a prominent food delivery aggregator, and TVS Motor Company, a major Indian two-wheeler manufacturer.
As Rapido boldly enters the cab market, India’s ride-hailing landscape is set to become more diverse and dynamic. This expansion brings new choices and opportunities to both consumers and drivers, promising to reshape the competitive landscape of ride-hailing in India.