Is it difficult for you to get to work on time every day? If you don’t want to go with the rest of the group, why not go alone? Your driver isn’t at home, and you need to meet up with some buddies right away?
The good news is that Rapido has arrived to put an end to everyone’s complaints. All you need to do is download and install the app, and you’ll be able to roam the city freely. It doesn’t matter what time of day or night it is since the internet keeps track of everything.
But do you know how Rapido generates revenue? What is the Business Model behind such an awesome utilization of tech and business? Keep reading to know more!
2. How Did The Rapido Effect Come Into The Business Landscape?
The bike taxi industry was not new to Rapido; a few other companies already operated in the same field. On the other hand, Rapido has put up a valiant battle against its rivals and continues to do so. Founded in 2015, Rapido is the end product of three young entrepreneurs.
Rapido was founded after determining a need for an affordable, convenient, and safe mode of transportation for clients. They found that people had to pay the same fee in fast-moving cities whether they were traveling in groups or alone on four-wheeled taxis because of traffic congestion. As a result, Rapido offers the finest alternative to a costly four-wheel drive to solo passengers.
3. Who Are The Innovative Minds Behind Rapido?
The three entrepreneurs behind the establishment of Rapido as a startup are Aravind Sanka, Rishikesh SR, and Pavan Guntupalli. They are three alumni of some of the most famous engineering universities who entered the field of entrepreneurship after having some considerable corporate experience.
4. What Is The Business Model Of Rapido?
Rapido’s Business Model is B2C (business to customer model), which means that they serve their clients directly as a business entity themselves. However, they are also leveraging vehicle storage to provide a carriage service in addition to the passenger dropping service. However, the end receiver of their product and service are consumers like us.
Their B2C concept allows users to hire a bike taxi directly from the app. After a successful booking, the user will be provided with the driver’s name, photo, and bike number, who is referred to as a captain.
For the benefit of the customer, all of these facts are provided. So that the customer is well aware of whom they are commuting with.
5. What Is The Rental Process In Rapido?
Two-wheeler rentals are now available hourly through Rapido in major cities. At Rs 99 per hour, the firm plans to provide services for up to six hours at a set charge. Customers will be able to conduct many errands on a single trip, reducing their exposure to multiple drivers and avoiding multiple reservations due to this new service.
6. What Are The Best Features of Rapido?
- Customers and drivers alike benefit from Rapido’s business model, which offers accidental insurance for both parties.
- As far as convenience goes, the app is accessible in five major languages, which is a big plus.
- Helmets are provided for safety.
- Live tracking of the ride’s location is also possible, as well as saving frequently visited areas.
- Depending on the time of day, a commuter trip might be 40–60 percent less expensive than a cab. The ‘captains’ can maintain track of the bike’s speed thanks to a speed-tracking feature provided by the app.
- There is a Rapido pass for commuters who use the train every day.
7. What Is The Revenue Model Of Rapido
In simple terms, it indicates how Rapido earns its revenue. Rapido’s income model consists of two primary components. One is based on a commission. The firm generates money by acting as an intermediary between the two parties – the drivers and the passengers. The firm charges a fee of 20% of the entire fare.
The B2C commission is the other one. B2C logistics is a major source of revenue for the organization in this location, with a focus on assisting logistics providers in delivering their goods.
7.1 Who Are The Major Investors Of Rapido?
Westbridge Capital, Alibaba’s Base Capital, Yamaha, Shunwei Capital, and Nexus Ventures are lead investors with their Series C funding round.
8. How Much Does It Cost To Use Rapido Services?
According to the company’s pricing structure, consumers will pay Rs. 15 as a basic cost, and an extra Rs. 3 for every additional kilometer they go.
Well, there is one plus point here.
Passengers willing to travel short distances can save a lot of money by using this service. As a result, there will be an increase in the need for the company to grow its business.
9. Who Are The Competitors Of Rapido?
Now that you’ve studied the Rapido business model, you may have a better understanding of its competitors as they are also a much-used service by the general public. Once you’ve discovered the company’s rivals, you’ll be able to tell which ones are serious challengers, which will be eventually discussed.
Rapido’s competitors can be divided into two categories.
Bike service companies: OLA and Uber are two of the most popular bike taxi service companies. Even though they are focused more on providing four-wheeler assistance and even commuting over farther distances, they do have the option of bike service.
And you definitely know about these two companies, either by word-of-mouth or by seeing the vehicles labeled with their names in your city.
Bike Rental companies: Vogo and Bounce are the top Bike rental companies, meaning that they will provide you with the bike for a fixed duration wherein you are any other person will be responsible for driving wherever you like, without their drivers.
Despite these, Rapido has come a long way in giving these top companies a good fight.
10. What Are The Challenges Faced By Rapido As a Startup?
Like any other firm, Rapido faces a number of potential threats to its revenue model, much like any other business.
- Uber, Moto, and Vogo all compete directly with Rapido for users’ attention. It seems that healthy competition and a free market, on the other hand, maintain a healthier ecology for both the provider and the buyer.
- The potential of a website or app being taken down or being hacked is another risk that arises for firms that operate mostly online.
- Rapido is working hard to improve security and customer service, both of which are lacking. Fairly speaking, Rapido promises to hide the number of female passengers by including an SOS button in the app.
- Rapido has to be concerned about the absence of work ethics and inadequate customer service abilities of the ‘captains’ of aggregators, which are frequently witnessed.
11. Is It Safe To Trust Rapido?
Many individuals have enjoyed trustworthy and secure Rapido’s rides. A wide range of safety measures and round-the-clock customer assistance are available. Moreover, whenever you are assigned to each captain, you can see the ratings obtained from the previous rides.
12. What Is In For Rapido In Its Future Prospects?
Rapido serves its customers with a cost-effective and intelligent service. Especially to those who are eager to save both time and money in the long run.
Rapido now operates in over a hundred locations, serving 1 million customers, and the firm claims that revenue has increased enormously as a result. If you’re going in a group, a four-wheeler may be the best option, but if you’re on your own and need to get to your destination quickly, a bike taxi is the best option.
As per Rapido’s B2C Business Model, Rapido Captains and passengers alike will benefit greatly from the company’s constant app updates and additions, which are aimed at making the app even more user-friendly. In addition, the company’s founders are considering lowering the prices to make their rides go even quicker by incorporating something new.