The Indian bike taxi startup, Rapido, which has been in operation for eight years, is making a foray into the cab industry in India, a market currently dominated by Uber and the homegrown player Ola.
The startup, based in Bengaluru, has initiated a pilot program for its cab service in the southern city of Hyderabad, according to sources. Their plans include expanding this service to other cities such as Delhi-NCR, Bengaluru, and Chandigarh, with the Delhi-NCR launch scheduled for as early as the following week.
Rapido initially offered motorbike and auto-rickshaw rides to customers. This expansion into cars broadens their range of services, aiming to attract a more diverse customer base. It also aims to enhance customer retention by providing an option for those who previously resorted to Uber when needing a car ride.
A Rapido spokesperson shared their enthusiasm about the successful launch in Hyderabad and the warm reception from the local market. He remarked, “At Rapido, we’re thrilled to share that our test run in Hyderabad for Rapido Cabs is off to a fantastic start. The city’s vibrant market has warmly embraced us, and the positive response is truly heartening. As we navigate our path forward, we are committed to keeping you closely informed about our progress and eagerly anticipate bringing our innovative services to other cities.”
Additionally, Rapido is exploring the integration of intercity bus ticket booking into its app by collaborating with Zingbus, a move that could expand Rapido’s gross merchandise value and help Zingbus reach a broader customer base.
Rapido and Zingbus have not yet commented on this potential partnership.
Founded in 2015, Rapido operates in over 100 Indian cities, with more than 25 million app downloads, over 10 million customers, and over 100 million rides, as per data on their website. The app-based cab market in India was long dominated by Uber and Ola, but recently, new entrants like BluSmart and InDrive have started to challenge the duopoly.
Rapido serves as an alternative to traditional cab companies, offering intra-city travel and last-mile connectivity with a presence of over a million bike drivers on their platform. However, the uncertain and varying regulations regarding bike taxis in different Indian states pose challenges for these platforms as they seek to expand their market share.
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Rapido has raised a total of $324 million, with its most recent funding round of $180 million announced in April of the previous year. The startup boasts investments from VC firms like WestBridge, Shell Ventures, Nexus Venture Partners, and AdvantEdge, as well as support from Swiggy, a food delivery aggregator, and TVS Motor Company, a major Indian two-wheeler manufacturer.
