Rapido Launches Cab Hiring Services: Directly Challenges The Dominance Of Uber, Ola In App-Based Cab Domain


Radhika Kajarekar

Radhika Kajarekar

Dec 07, 2023


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.” 

Rapido Launches Cab Hiring Services: Directly Challenges The Dominance Of Uber, Ola In App-Based Cab Domain

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.

Inage Source


Radhika Kajarekar
Radhika Kajarekar
  • 772 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online