Are Uber and Ola overtaken by Rapido?
The general public needs more transportation as the world gets busier every day. It also opens up considerable potential for various developing businesses.
After becoming the talk of the town, Ola, Uber and now Rapido are all vying for customers with a very slim edge. Thanks to its market-inclusive techniques, Rapido has risen considerably to the top of the already crowded online taxi service industry in recent times.
Rapido Value Increase
It was discovered that Rapido, the bicycle taxi aggregator, was valued at more than US$830 million in the latest round of investment by Swiggy, the online food delivery service. This attribute has helped the transport company become one of the most popular bike taxi service companies.
It’s impressive that an organization that took just three years to reach $2 million in success was able to reach this million dollar milestone. With this, it became the first and only bicycle taxi company to achieve this milestone. The company is about to join the national list of successful unicorns.
However, companies like Ola and Uber have seen huge success in their specialty markets. In this way they resisted the newly formed Rapido, but they failed to demoralize it. Rapido’s growth chart has accelerated dramatically, transforming it from a small company into a center of attention.
The beginning of the period
India’s first and largest bike taxi company was established in August 2015. Aravind Sanka, Pavan Guntupalli and SR Rishikesh, two IIT graduates and a PESU alumnus, founded it as “ the barrier “. Nearly 16 Indian cities already offer the company’s services, with two more being added every month.
Finding the void in the market for commuter needs served as a springboard for the company to spread its name across the country. Co-founder Pavan Guntupalli noted that only 13-14% of Bengaluru’s commuter population is covered by the city’s pre-existing taxi services, such as Ola and Uber. This then turned into a business concept for Rapido to provide a cheap alternative in the market.
According to 2021 statistics, the Rapido app has 1.5 lakh “captains” who have signed up, which is a monthly increase of 30%. It provides 10,000 monthly drivers and around 30,000 rides every day. The company’s co-founder says Rapido customers often save between 60 and 70 percent on prices. Customers spend 30-40% less time in traffic thanks to its extended offers than they would in taxis.
Additionally, the company is well known for the unique tactics it has developed to make it easier for people who are blind to travel. Every day, between 80 and 100 visually impaired people use the Rapido application. Aravind Sanka, co-founder, previously said, “We have partnered with TrueCaller. Blind or visually impaired people will only have to leave us a message to register automatically.
Used adversity as an opportunity
Thanks to its wide range of customer service strategies, the company is growing steadily in the already saturated field. The company’s senior executive says that around 78% of Rapido’s total revenue comes from its bicycle taxi business. More than 15 million people now make up the company’s customer base. In 2020, when everything was at a standstill and daily commutes were completely at a standstill, Rapido was not deviating from its trajectory and focused on expanding. It quickly recovered by continuing its strategy of interacting with customers through digital channels. Additionally, Rapido has allocated $20 million for marketing expenses in 2021.
According to reports, Rapido controls more than 70% of the shared bicycle taxi market. A total of Rs 558 crore was raised from several investors including Westbridge AIF, Nexus Ventures, Konark Trust, Saber Investment, Skycatcher LLC, Bace Fund and Integrated Growth Capital. Additionally, it raised Rs 390.11 crore in its Series B fundraising.
India’s first cycle taxi business continues to grow and enjoys unstoppable financial success. It’s also essential to remember that companies like Ola and Uber have presented the business to fierce competition. But for now, they are working alone.
The claims claim that Ola lost Rs 2,208 crore in 2020. Even though Ola’s income was only 300 crore less than the previous year, a measure of a company’s popularity with the big audience, they were down. On the other hand, a fall of Uber is expected following the “Uber File Leaks”. This illustrates how Ola and Uber’s dirty laundry comes to light and leads to its inevitable end. Simply put, Ola and Uber are in decline, which presents the potential for Rapido to become a significant boom in the industry.
edited and proofread by nikita sharma