Rapido plans to enter cab business in India
Bike taxi start-up Rapido is venturing into the cab market, where it will compete with giants like Uber and Ola. The Bengaluru-based firm has initiated a pilot program for its cab service in Hyderabad and intends to expand to other cities such as Delhi-NCR, Bengaluru, and Chandigarh. Regarding the Hyderabad test run, a spokesperson for Rapido told ETtech, "We've gotten a fantastic response so far and it has given us confidence about the model working out."
Diversifying offerings and integrating bus ticket booking
Rapido was among the first to introduce ride-hailing services with two-wheelers and later extended to three-wheeled autorickshaws. By adding cars to its platform, the firm aims to diversify its services and appeal to a wider range of customers. The company is also considering a partnership with Zingbus to incorporate intercity bus ticket booking within its app, reports TechCrunch. This alliance would boost Rapido's gross merchandise value while helping Gurugram-based Zingbus broaden its customer base.
Growing competition in cab-hailing space
The Indian cab-hailing sector has experienced heightened competition in recent years, with niche service providers such as BluSmart and Shoffr entering the fray. Additionally, companies like Everest Fleet, which owns commercial vehicles and supplies them to Uber and Ola, are also making headway. Rapido's primary two-wheeler and three-wheeler markets have faced disruption as well, with ONDC-backed Namma Yatri collaborating with local autorickshaw unions, and Ola relaunching its bike-taxi service using electric scooters.
Rapido's investors include Swiggy and TVS Motor Company
Unclear bike taxi regulations in various Indian states pose challenges for platforms like Rapido when forecasting their market growth. Nevertheless, the start-up has secured $324 million in funding, with the most recent round of $180 million announced in April 2022. Its investors include WestBridge, Nexus Venture Partners, Shell Ventures, AdvantEdge, Swiggy, and TVS Motor Company. Established in 2015, Rapido operates in over 100 cities across India and has garnered more than 25 million app downloads.
