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Business News/ Companies / News/  Rapido launches cab services to race with Uber, Ola
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Rapido launches cab services to race with Uber, Ola

Rapido also aims to expand across India by the middle of 2024, said co-founder Pavan Guntupalli

The aggregator company enjoys 60 per cent market share in bike taxis, Rapido plans to expand its footprintPremium
The aggregator company enjoys 60 per cent market share in bike taxis, Rapido plans to expand its footprint

Rapido, a bike-taxi and auto-aggregator company, has launched Rapido Cabs, a cab booking service, in addition to its bikes and auto booking services, according to an official release. Swiggy-backed start-up claimed that it has around 1 lakh cabs on its platform, and the service is currently available in Delhi NCR, Hyderabad, and Bengaluru.

Rapido also aims to expand across India by the middle of 2024, said company’s co-founder Pavan Guntupalli.

The aggregator company enjoys 60% market share in bike taxis, Rapido plans to expand its footprint with "the pan-India launch of Rapido Cabs, introducing an initial fleet of 1 lakh vehicles," as per the release.

Also Read | Can Uber navigate the bumpy road ahead?

Speaking on the launch of cab services, Guntupalli said, "We are incredibly excited to introduce Rapido Cabs pan India following the immense success of our bike taxi and auto services across the country. Our innovative SaaS-based platform revolutionizes the conventional commission system for drivers, tackling the persistent challenge of commission sharing with aggregators. This pioneering approach ensures that drivers incur only a minimal software usage fee, marking a significant shift in the industry."

He added, “It also prioritises customers by ensuring lowest price guarantee and making our services exceptionally affordable for all."

Rapido charges nominal subscription fee from its drivers. Once a driver reaches earnings of 10,000 from the Rapido app, drivers will be subject to a subscription fee of 500.

In 2022, Rapido had raised $130 million from various investors in past, is currently present in around 100 cities across the country with over 25 million customers and over 1.5 million driver-partners.

Also Read | Mounting woes threaten Rapido's stunning rise

Both Ola and Uber, known for their cab aggregation businesses, offer bike taxi services, but Rapido is the largest and possibly fastest growing. The television advertisements airing during the Indian Premier League games have only contributed to the brand's recognition. However, autorickshaw unions seem to be the most hostile toward Bike Taxis, as they see them as their closest competitors, due to the price point.

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Published: 06 Dec 2023, 02:23 PM IST
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