Rapido Surpasses Uber in India's Ride-Hailing Market with Innovative Motorcycle Taxi Model, ET Infra
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In a major shake-up of India's ride-hailing industry, homegrown startup Rapido is outpacing global giants like Uber and Ola in user growth, while also achieving profitability — a rare feat in the sector.Founded in 2015 and headquartered in Bengaluru, Rapido has revolutionised urban mobility in India with its low-cost motorcycle taxis and innovative pricing structure. In 2023, the company clocked more app downloads than Uber (21 million) and Ola (19 million), with 33 million installs, according to data analytics firm Appfigures.The startup's distinctive revenue model charges riders as little as ₹20 per trip while allowing drivers to access its platform via a nominal daily subscription — as low as ₹9 — instead of taking a commission per ride. This diverges sharply from the traditional models used by Uber and Ola, who have since introduced similar pricing options for some drivers.'Our business model is built for India — where two-wheelers are the most accessible and widely owned vehicles,' said co-founder Pavan Guntupalli. 'Even in small villages, you'll find a farmer's son with a bike.'Rapido now averages 4.3 million rides per day across motorbikes, autos, and cars — about triple Ola's volume and 40 per cent higher than Uber's, the company claims. This growth has allowed Rapido to reach profitability and fuel its ambition to expand beyond the 250 cities it currently serves, with a potential public listing on the horizon.Backed by $200 million in funding from WestBridge Capital, Nexus Venture Partners, and Prosus, Rapido was last valued at $1.1 billion. Yet, regulatory roadblocks remain. Its bike taxi operations in Karnataka were halted after a court ruling deemed use of personal bikes for commercial services illegal — a ruling now under judicial review. Maharashtra has also imposed bans on non-electric bike taxis.Additionally, the GST implications of zero-commission models are yet to be fully clarified.Despite these hurdles, Rapido is doubling down on customer-centric features, including female-only ride options and safety enhancements like seatbelts in auto rickshaws. 'We're building for Indians, by Indians,' said co-founder Aravind Sanka, underscoring the company's hyper-local approach.With Uber declaring India one of its most strategic markets and launching new features to woo price-conscious consumers, the ride-hailing battle is far from over. But for now, Rapido appears to have taken the lead — and on two wheels.
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