'Lowest price guaranteed': Rapido launches cab services in three metros
Swiggy-backed ride-hailing platform Rapido has officially launched its cab services in Delhi, Bangalore, and Hyderabad, with plans to expand across India by mid-2024. The company currently operates 1,00,000 to 1,50,000 cabs, including 60,000 in Delhi, primarily fueled by CNG. Co-founder Pavan Guntupalli claims that Rapido offers "the lowest price guaranteed" and is more affordable than other options in the market.
Zero commission and electric vehicle partnerships
The cab services will operate on a SaaS-based platform, ensuring transparency and fair value for driver partners. Guntupalli announced that Rapido will offer zero commission to support drivers, stating it's "a commitment to empower all our partners to play a crucial role in making transportation efficient and reliable." In terms of electric vehicles, Rapido has partnered with multiple EV providers like Zypp and Zemo E-Bike to electrify its existing two-wheelers and plans to follow a similar approach for its cabs.
Profitability and expansion plans
Guntupalli mentioned that Rapido is operationally profitable and aims to be EBITDA profitable. He expects Rapido cabs to contribute 15-20% of the overall revenue within the next 1-1.5 years. Founded in 2015 as a two-wheeler ride-hailing service, Rapido later expanded to include three-wheelers and now transports over 15 crore users daily. The company competes with Uber, Ola, and ONDC-backed Namma Yatri in the three-wheeler category, while facing competition from Ola and Uber in select cities for two-wheelers.
