On December 5, 2023, Rapido made its official entry into the cab aggregation sector by introducing 'Rapido Cabs.' This addition expands Rapido's range of services, which already include bike taxis and three-wheeler auto rides. With this strategic move, Rapido positions itself as a strong competitor alongside Ola and Uber in India's flourishing online taxi services market. The market is currently valued at Rs 30.72 billion and is projected to have a compound annual growth rate of 12.93% from FY 2021 to FY 2025.
After successfully launching its cab service in Hyderabad a month ago, Rapido had a promising start. Despite facing tough competition from well-established players such as Ola and Uber, as well as emerging alternatives like BluSmart and InDrive, Rapido benefits from a large customer base of over 10 million and a strong track record of 100 million rides in 100 cities.
PC: Moneycontrol
In the Indian ride-hailing market, which has long been dominated by Ola and Uber, Rapido strives to stand out by addressing the existing industry challenges. Our goal is to offer a top-notch travel experience by focusing on affordability, the availability of cabs, highly skilled drivers, and passenger safety—areas where Ola and Uber have encountered difficulties.
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Rapido Cabs is pleased to announce the launch of its operations with a remarkable fleet of 100,000 vehicles, demonstrating our dedication to meeting the growing need for dependable transportation services. Additionally, Rapido has taken an innovative approach to driver compensation by implementing a Software as a Service (SaaS) model. In contrast to the traditional commission-based system, our SaaS model requires drivers to pay a flexible subscription fee that is determined by their earnings through the platform.
Despite experiencing significant growth, Rapido has encountered some financial challenges in FY22. While its revenue has surged by 91.5% to Rs 144.8 crore, the company has unfortunately experienced substantial losses amounting to Rs 439 crore. This highlights the difficulties of sustaining growth in a highly competitive market. However, Rapido is fortunate to have received investments totalling $310 million from esteemed entities such as Nexus Venture Partners and WestBridge Capital. As a result, the company is well-positioned for further expansion.
Soon, Rapido is considering expanding its services beyond just the cab sector. According to reports, there may be possible collaborations with Zingbus for bus ticketing services, indicating Rapido's ambition to become a comprehensive mobility platform. During this transformative phase, the company aims to enhance the ride-hailing experience and cater to the changing needs of its diverse user base.
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