Bike-and-auto-rickshaw aggregator has ventured into the cab industry with the launch of Rapido Cabs.
The company said Rapido Cabs has a zero-commission model for drivers through a SaaS-based platform. Drivers receive direct payments from customers on paying a nominal subscription fee. For example, a driver is required to pay a subscription fee of Rs 500 upon reaching earnings of Rs 10,000.
“Our innovative SaaS-based platform revolutionises the conventional commission system for drivers, tackling 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,” Pavan Guntupalli, Co-founder of Rapido, said.
Rapido’s foray into the cab market comes amid reports of market leaders Ola and Uber expanding their services. In October, Ola debuted ‘Ola Parcel’, venturing into parcel delivery using electric scooters in Bengaluru. On the other hand, Uber revealed plans to launch a bus service for commuters in Kolkata in November.
Rapido last secured $180 million in its Series D funding round, with Swiggy leading the investment alongside TVS Motor Company. Previous backers, including Westbridge, Shell Ventures, and Nexus Ventures, also participated in this funding round. Notably, Rapido had previously raised $130 million from diverse investors.
Founded in 2015 by Pavan Guntupalli, Rishikesh SR, and Aravind Sanka, Rapido is an Indian online bike taxi aggregator. It operates in over 100 cities across India and has more than 15,000 registered riders per day. Rapido has expanded its offerings beyond bike taxis, with the launch of Rapido Auto (auto-rickshaw rides) and Rapido Rentals (rentals of two-wheelers) in select cities.
Edited by Affirunisa Kankudti
