Bike-taxi and auto aggregator Rapido has now entered the cab booking services category with the launch of Rapido Cabs. The Swiggy-backed startup said it already has a fleet of around 1 Lakh cabs on its platform and the service is currently operational across Delhi NCR, Hyderabad and Chennai.
Rapido is also targeting to expand its cab facilities across the country in the coming months, the company’s cofounder Pavan Guntupalli told media at the launch event.
The startup is banking on its zero-commission model to onboard drivers to its platform. It said that the drivers won’t be required to pay any commission from their rides to the platform – a burning issue among the cab drivers working with aggregators like Ola and Uber in the country.
Instead, Rapido cab drivers will have to pay a minimal subscription fee to stay on the platform. “As an illustration, upon reaching earnings of INR 10,000 from the Rapido app, drivers will be subject to a modest subscription fee of INR 500,” the startup said in a statement.
On the customer end, Rapido claims to offer fares lower than its competitors.
Users can avail the Rapido cab services from the platform’s app only. The startup is looking to leverage its vast bike-taxi user base to dent the duopoly of Ola and Uber in the cab-hailing market.
Currently, Rapido cab services are restricted to intra-city rides.
Founded in 2015 by Rishikesh SR, Pavan Guntupalli, and Aravind Sanka, Rapido operates a platform that connects users with bike taxis. It also offers auto services and peer-to-peer delivery services via Rapido Local. It claims to have a fleet of 5 Mn bike-taxis and 7 Lakh auto-rickshaws. The startup claims to operate in over 100 Indian cities and have over 25 Mn app downloads.
To date, the startup has raised over $300 Mn across multiple rounds and counts TVS Motors, Nexus Venture Partners and WestBridge Capital among its investors. In April last year, the startup raised $180 Mn in a round led by Swiggy in participation with TVS Motors, WestBridge Capital, Nexus Ventures, and Shell Ventures, valuing it close to the $800 Mn mark.
With the launch of cab services, Rapido now goes head-to-head against deep-pocketed Ola and Uber, and relatively new entrants like BluSmart.
On the growing competition, Gunutpalli said that Rapido will have the edge as the moment majority of cab drivers are disgruntled due to the heavy commission that they have to pay from their earnings and users are upset due to the high number of cancellations by drivers.
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