Introduction
Basic Information
Legal Name
Roppen Transportation Services Pvt Ltd
Founding Date
Nov 2015
Headquarters
Bangalore, Karnataka, India
Website Link
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Founders
- Aravind Sanka (Co-Founder)
- Rishikesh S R (Co-Founder)
- Pavan Guntupalli (Co-Founder)
Rapido Journey
Founded by two alumni from IIT-Bhubaneswar, IIT- Kharagpur : Aravind Sanka, Pavan Guntupalli, and one from PESU: Rishikesh SR .
Total Funding
- Rapido has raised a total of $324 million through 10 funding rounds.
- The first funding round was on May 8, 2015, and the latest was a Series D round on April 13, 2022, where they raised $180 million.
Investors
Pawan Munjal (Hero MotoCorp)
WestBridge Capital
Integrated Capital
Thompson Taraz Managers
Nexus Venture Partners
AdvantEdge Founders
Swiggy
Rajan Anandan (Google)
Astarc Ventures
India Technology Fund
BAce Capital
Ka Wing Kevin Kwong
Skycatcher
Achievements: (Revenue and Rides)
- Rapido has achieved significant milestones. On average, it facilitates 1.3 million rides per day and reported a Gross Merchandise Value (GMV) of ₹2520 crore for the fiscal year 2023.
- The company has around 20 million customers and 2 million drivers, known as “captains.” Since its inception, Rapido has completed 307 million rides.
Competitors:
Indriver
OLA
Uber
Business Model:
- If we talk about the business model of Rapido then it can be divided into three parts.
- This platform (mobile app) handles ride booking payment and logistics while the actual work is done by the captains.
- Revenue Model Rapido Earns a Percentage of the fare Paid by the Customer.
- Rapido operates not only as a primary source of income but also as a secondary source of income for the unemployed or underemployed.
- It should be clear in the mind of both the customer and the captain (driver). why to download Rapido and what value it adds to our life.
Mobile User Interface (Mobile UI)
- The Rapido mobile app is very user-friendly. After opening the app, you need to enter two locations: the starting point and the destination.
- This mobile app incorporates AI, making route optimization and demand prediction easier.
- It has also enhanced the user experience with advanced features like real-time tracking and digital payment options.
Rapido Strategy
Rapido’s strategy focuses on two main directions:
- Be Your Own Boss: Empowering individuals to work independently.
- Create Employment at a Mass Scale: Generating widespread job opportunities.
- First of all, Rapido understood its market and its competitors.
- In 2015, while Ola and Uber were focusing on cab taxis with an average ticket price of ₹200 to ₹300, Rapido noticed that many people couldn’t afford these prices, and no bike taxi service was operating in an organized manner.
- With two-wheelers offering high mileage and low maintenance costs, the ticket price could be reduced. Additionally, the market already had a large number of two-wheelers, and in every ride, 70-80% of the back seats remained vacant.
- Four-wheelers often took a lot of time due to traffic, whereas bikes could navigate traffic quickly. Rapido focused not only on Tier 1 cities but also on Tier 2 and Tier 3 cities.
- Public transportation was slow and not available in all locations, whereas bikes had the advantage of fast movement and the ability to go anywhere.
Benefits of Rapido:
- Rapido focuses on refining its processes rather than spending aggressively to acquire customers or expand quickly in its first 3 years.
- They have implemented safety measures through a feedback system to enhance customer experience.
- This system monitors high speeds, sharp turns, and driver behavior, directly collecting feedback from customers to prevent accidents.
- Rapido also provides insurance coverage and offers discounts to loyal customers .
- Drivers are paid on a daily basis.
- Flexibility in time and location for the Captains (drivers).
Campaigns Run By Rapido:
- “Helmet Awareness Campaign by Rapido ”: The campaign emphasized the dual helmet policy which is to make sure that Captains are wearing Rapido helmets and Tshirts and carrying an extra helmet for the customers. The insights of the campaign were – if any customer is not provided a helmet by the captain, he/she can rate and review that in the app.
- “Bike Wali Taxi, Sabse Saxi”: Rapido made waves with its “Bike Wali Taxi, Sabse Saxi” campaign, which became a viral sensation across social media platforms.
- ‘5 Nahi Toh 50’: The ‘5 Nahi Toh 50’ concept aims to address the frustration of commuters, particularly females, who often struggle to find autos promptly. This initiative promises users confirmed auto allocation in 5 minutes of search time.
Challenges and Solutions:
- Initially, Rapido faced the challenge of changing the perception that only males should ride bikes or work as bike taxi riders, as there was a stigma against females sitting behind male drivers or working as riders themselves.
- Securing funding was also difficult because competitors like Ola and Uber had already raised substantial funds. Potential investors questioned how Rapido would compete against these established players.
- Sometimes, Rapido captains would bypass the app and directly pick up customers, delivering them to their destinations. Rapido ensures captains benefit from taking a small commission by ensuring they receive ride requests efficiently from any location, reducing wasted time. If captains have to wait too long for customers, Rapido charges a waiting fee to customers and compensates the captain accordingly.
- Rapido also faced regulatory challenges from local transport authorities and legal issues in various states. To address these challenges, Rapido engaged in discussions with authorities, highlighting the advantages of bike taxis and ensuring compliance with local regulations.
Why others unable to do like Rapido:
Companies like Ola and Uber faced regulatory challenges because many states in India do not allow bike taxis with yellow number plates. Rapido operates more like a bike pooling service.
Conclusion:
- It has been proven that building a successful business can be achieved by proceeding slowly and steadily. Despite facing numerous competitors, Rapido carved out a niche for itself by offering an affordable alternative for travel.
- Rapido has also made a positive environmental impact because it allows people to travel easily from one place to another alone, instead of using four-wheelers.
- While big established companies like Ola and Uber focus on the large cab market, Rapido smartly concentrates on bike taxis and has grown into a multi-million dollar company.
- When providing incentives to their workforce, it’s crucial not to set unrealistic expectations that could backfire and harm the company.
- If you’re new to the market, don’t just look for big opportunities. Pay attention to the smaller opportunities too.