Rapido, the popular Indian bike taxi startup, is making a significant move by entering the competitive cab market. The Bengaluru-based company, which initially provided rides on motorcycles and auto rickshaws, has recently launched a pilot of its cab service in Hyderabad, with plans to expand to other major cities like Delhi-NCR, Bengaluru, and Chandigarh. The addition of cars to Rapido’s offerings aims to diversify its services, attract a larger customer base, and provide more convenient options for users. This strategic move also aims to retain existing customers who occasionally require car rides but may have previously opted for competitors like Uber.
Key Takeaway
Rapido, the Indian bike taxi startup, is expanding its services by entering the cab market. With its successful pilot launch in Hyderabad, the company plans to roll out its cab service in other major cities in India. This move not only diversifies Rapido’s offerings but also creates a stickiness factor for existing customers, giving them more reasons to choose Rapido for their transportation needs.
Expanding the Ride Options
Rapido’s foray into the cab market marks a significant expansion of its transportation services. The company’s decision to incorporate cars alongside motorbikes and auto rickshaws broadens the range of choices available to customers. As the startup introduces its cab service in more cities, it aims to capture a larger market share and compete with industry giants like Uber and Ola.
A Positive Response in Hyderabad
The test run of Rapido’s cab service in Hyderabad has yielded promising results. The vibrant market in the southern city has warmly embraced the new offering, providing a favorable response. This positive reception has encouraged Rapido to forge ahead with its expansion plans, with the company now eagerly looking to roll out its innovative services in other cities across the country.
Integration with Intercity Bus Ticket Booking
In another strategic move, Rapido is reportedly exploring a partnership with Zingbus, a Gurugram-based company that offers intercity bus ticket booking services. By integrating this feature within the Rapido app, the startup aims to enhance its gross merchandise value while allowing Zingbus to expand its customer base. Although details about the partnership are not yet available, this collaboration presents an opportunity for both companies to leverage their strengths and provide users with a seamless travel experience.
A Solid Alternative in the Indian Market
In a market previously dominated by Uber and Ola, Rapido has emerged as a strong alternative for price-sensitive Indian customers. With its extensive presence in over 100 cities and a network of more than a million bike drivers, the startup offers affordable intra-city travel and last-mile connectivity. This unique value proposition has allowed Rapido to carve out a niche for itself in the transportation industry.
Challenges Ahead
While Rapido’s expansion into the cab market seems promising, the lack of clarity regarding bike taxi regulations in different Indian states poses challenges for all platforms operating in this space. As government regulations evolve, it remains to be seen how Rapido and other similar companies will navigate these changes and continue their growth in the Indian market.
Rapido has attracted significant investment since its inception in 2015. With a total funding of $324 million, including a $180 million round announced in April 2020, the company has secured support from venture capital firms such as WestBridge, Nexus Venture Partners, and AdvantEdge. Additionally, Rapido has backing from notable players in the Indian market, such as food delivery aggregator Swiggy and two-wheeler giant TVS Motor Company.
