India's bike taxi: Rapido business model

Rapido business model
Image source-Google| Image by-jansatta.com

Along with the advancement of technology, services are also scaling up. You might have experienced or heard from your elders that they use to wait for a very long time at the bus stops for a bus to arrive. Also, compromise 1 or 2 hrs for catching a bus. One of the reasons behind the scenario can be the limited transportation network and lack of private convenience. 

And today, we are flooded with a large number of cars, buses, bikes running on the road and causing huge congestion on the road network. Especially, talking about the city areas where it is a guarantee that you will destroy some minutes if traveling on a four-wheeler. So, as to give relief and ease the problems of the struggling passengers, Rapido brings in a bike taxi service.

From the article, we will get you across the bike taxi business and highlight the Rapido business model for getting you a grip over the core company and its services. 

About: Rapido

Rapido was not a fresh entrant into the bike taxi business but there were a few players already existing with the same business. Though Radipo gave and still giving a tough fight to its competitors. Coming to the establishment then Rapido was founded in the year 2015 by the trio of three young minds. 

They are Pavan Guntupalli, Rishikesh SR, and Aravind Sanka. Three of them are engineering grads from prestigious engineering colleges and build this startup after earning strong corporate experience under varied job positions. Let us get some brief about the co-founders of the company:

Aravind Sanka- is a mechanical graduate from IIT, Bhubaneshwar. He has worked as a Supply chain finance business partner at Flipkart and also founded the theKarrier, a supply & logistics company.

Pavan Guntupalli- He has done his engineering in electronics & electrical communication from IIT, Kharagpur, and worked as a Software Developer at Samsung Research, India.

Rishikesh SR- He has done BE, computer and information sciences at PES University, Bangalore. He has worked with Aravind Sanka as a co-founder at the theKarrier.

Rapido was launched after discovering a huge demand for an economical, easy and safe ride for the customers. The founders found out that in the fast-moving cities people were hindered by traffic and have to pay the same fare either moving in a group or alone in a four-wheeler taxi. So, to provide a fulfilling facility to single travelers Rapido brings in the best substitute to an expensive four-wheeler drive. 

Also, founders believe that four-wheeler taxis are not suitable for a regular moving single individual. And Rapido advantages them by providing a low-cost fare and easy tackling in congested traffic-filled cities. 

Rapido business model 

The Rapido business model works on a B2C basis, where they are serving direct customers. But, along with passenger dropping service, they are using vehicle storage for providing a carriage service. And few of its business clients are Swiggy, EatFit, Big Bazaar, Spencer supermarket, etc. 

And the best part is Rapido is working only as a middleman between the bikers and customers. Where a biker is the one who brings his own vehicle and gets registered as their captain after fulfilling their captain's terms. And Rapido charges a commission from the captain after customer dropping is accomplished. 

Going in-depth, their B2C model facilitates its user to book a bike taxi from the application. After a successful booking, the user will be shared with the name of the driver who is called a captain, his photograph, and bike number. All these details are shared for the client's clarity and confirmation.  

The minimal charge that they are taking from their customers is Rs. 15 as a base fare and Rs. 3 is charged for an additional km (fares charged are subject to change as per the company's pricing policy). That makes it quite economical for the passengers who are willing to take a short distance ride. And in turn, raise demand for the company to expand its operations.

Today, Rapido is operating in more than 100 cities with a large customer base served by 1million captains and as claimed by the company the revenue has jumped humongously.  

Rapido's competitors 

Now, looking over the Rapido business model you might have developed some sense over its revenue model and operations. But, after finding its competitors you would make out that who all are prime contenders giving a tough fight to the company. 

So, Rapido's competitors are mainly present in two forms. First is bike taxi service providers that include OLA and Uber moto. While the second form is bike rental service companies that include Vogo and Bounce. 

OLA and Uber carry a brand advantage as people famously know them for their four-wheeler taxi services. While Vogo and Bounce are more into a bike rental space where customers have to register themself and upload essential documents. Additionally, scan and pay for the service.

Take away

Rapido provides an economical and sensible service to its clients. Especially to those who are willing to save their time and money. A four-wheeler ride may be reasonable if traveling in a group while if you are single and wanted to reach at time by tackling the city hurdles then a bike taxi is the right choice.

From the article above, we derive the Rapido business model and ascertain the main services offered by them. Additionally, we got an indication about how is the company's financial health from its recent growth in revenue.