Rapido Business Model: How Rapido Generates Revenue?

The increase in traffic in most cities these days has become an inevitable problem. Parking a car in major cities today is one of the most impossible situations for anyone.

Often times, there comes a time when you need to get to a destination but have no way to do so. At such times, you are angry and anxious at the thought of a miracle. But thanks to new technological advances and new ideas, we have companies like Rapido to save us from this type of situation.

You just need to install the application, and you can go anywhere in the city. Here's a look at the Rapido business model and how it makes money.

Rapido – Introduction

Rapido, a bike taxi service headquartered in Bangalore, India, launched its operations in 2015. Presently, it serves over 100 cities nationwide, facilitating convenient travel within urban hubs and their outskirts. With a daily user base exceeding 15,000 registered riders, Rapido has emerged as a prominent figure in India's transportation landscape.

Rapido Business Model

Rapido uses a simple and innovative business model. It connects people interested in fast cars and taxi drivers, known as Rapido Captains, through a mobile app.

Rapido provides a platform to connect customers with drivers.

Rapido has a B2B division where it provides logistics services to companies by helping them deliver their products to the last mile through its network of carriers.

Rapido Revenue Model

Rapido's revenue model is comprised of two main parts, and the company experienced impressive growth in 2019 with a 13x rise in revenue.

B2C Commission Model: Rapido boosts its income by offering business-to-consumer (B2C) logistics services. By working together with logistics firms, Rapido enables the transportation of products and resources. This additional funding boosts Rapido's financial standing and alters its business functions.

Commission-based model: Rapido acts as a mediator between its network of captains and ride seekers. In this commission-based model, the company generates revenue by charging a commission equal to 20% of the total run for each run. This approach ensures a stable income stream for Rapido while providing financial opportunities for the Captains.

Brand Advertising: Branding is essential in Rapido's strategy for financial growth. Rapido helps brands expand by offering advertising opportunities, which boosts their popularity. This financial support enhances Rapido's overall financial achievement.

By taking part in various sources of income, Rapido has cemented its position as a major player in transportation and delivery, experiencing substantial revenue growth and creating value for both its partners and shareholders.

To conclude

When examining the Rapido business model, it is clear that both customers and drivers receive significant advantages. Continuously improving their app's features and user interface shows their dedication to meeting a variety of user requirements. Additionally, Rapido's new features cater to visually impaired individuals, demonstrating their commitment to inclusivity.

Ever since its inception in 2015, Rapido has achieved outstanding progress. Their constant commitment to tackling India's urban transportation challenges is evident 24/7. Rapido's bike services provide a quick option for people looking for fast transportation.

Rapido has established a presence in the market by prioritizing user-friendliness, accessibility, and quick solutions. Their combination of innovation and convenience makes them the top choice for smooth city commuting.

FAQs

Q. How does Rapido get profit?

A. Rapido generates revenue by providing bike taxis, autos, and delivery services, along with its subscriptions and marketing income. Income from the delivery services is the primary source of revenue for Rapido. The company has more than 25 million downloads with over 1 million captains (riders) and 10 million customers.

Q. How does Rapido take commission?

A. The Rapido Cabs had a zero-commission model through a SaaS platform. Drivers on the Rapido platform need to pay a subscription fee of Rs 500 if their monthly earnings exceed Rs 10,000. For auto rides, the daily fees will be in the range of Rs 5 and Rs 29. Now, it has been extended to auto services as well.

Q. How is Rapido so cheap?

A. Instead of the prevalent commission model that charges close to 30 per cent on each ride from the driver, Rapido banks on a subscription model. This option makes it cheaper for the consumers as well.

Q. Who invested in Rapido?

A. Rapido has 57 institutional investors including Nexus Venture Partners, WestBridge Capital and Thompson Taraz. WestBridge Capital is the largest institutional investor in Rapido. Pawan Munjal and 32 others are Angel Investors in Rapido.

Also Read: List of 5 Top clothing brands in India: You must know