Rapido, a prominent player in the bike taxi and auto-rickshaw transportation sector, has officially entered the cab aggregation market with the launch of “Rapido Cabs.”
This strategic move places Rapido in direct competition with industry giants like Ola and Uber, signaling the company’s expansion into a broader spectrum of transportation services.
Rapido To Introduce Cab Service Like Ola Uber
The announcement follows a successful pilot test of the cab service conducted by Rapido in Hyderabad about a month ago, where the company reported a positive start to its new venture.
With this expansion, Rapido aims to tap into the growing market for online taxi services in India, which was valued at Rs 30.72 billion in FY 2020 and is projected to witness substantial growth in the coming years.
The ride-hailing space in India has been historically dominated by Ola and Uber, both of which have become synonymous with cab services in the country. Despite not having the early-mover advantage, Rapido plans to leverage its existing customer base, which spans over 100 cities and boasts nearly 10 million customers with 100 million rides completed to date.
Rapido Cabs has kicked off its operations with an impressive fleet of 100,000 vehicles, positioning itself as a significant player in the cab aggregation space. The company aims to address some of the challenges faced by drivers on other platforms by introducing an innovative payment model.
Rapido Cabs’ Financial Performance
Unlike the commission-based system employed by Ola and Uber, Rapido Cabs adopts a Software as a Service (SaaS) model. Under this approach, drivers are required to pay a dynamic subscription fee based on their earnings through the Rapido platform.
The move into cab aggregation aligns with Rapido’s broader strategy to diversify its offerings and enhance its position in the competitive transportation sector. Rapido’s commitment to providing a superior travel experience, coupled with its focus on affordability, availability, and safety, positions the company to potentially disrupt the market.
While Rapido has not yet disclosed its financial performance for FY23, the FY22 numbers reveal the company’s growth challenges. Despite a commendable 91.5% increase in revenue from operations to Rs 144.8 crore during FY22, Rapido’s losses surged by 2.6 times to Rs 439 crore.
The company’s strategic expansion into the cab aggregation market is seen as a crucial step in navigating the competitive landscape and meeting the evolving needs of its diverse customer base.
Additionally, there are reports suggesting that Rapido is exploring the possibility of adding bus ticketing services to its platform in partnership with Zingbus, further diversifying its range of offerings and solidifying its presence in the broader mobility ecosystem.
