Ride-hailing platform Rapido has strengthened its position as the market leader across multiple transport categories. Having achieved the unicorn status last year, the company continues to innovate and expand. Co-founder Pavan Guntupalli shares with Anees Hussain the company’s strategy and future plans. Excerpts:
How has your market share progressed?
Our transition to a zero-commission SaaS model in late 2023 has been a game-changer. We handle over 3 million daily rides, making us the industry leader. In bike taxis, we dominate. In three-wheelers, launched post-Covid, we conduct over a million rides. Our cab segment, which is just a year old, already handles nearly half a million rides. In one metro, we’ve even become the top four-wheeler service provider.
With competitors also moving to zero commissions, how do you stay ahead?
In this industry, nothing is uncopyable. But we push boundaries beyond zero commissions. Our forward tipping mechanism lets users and captains set mutually beneficial pricing. This innovation challenges ride-hailing norms, not just in India but globally.
Any plans for overseas expansion?
Right now, our focus is purely on India. The potential here is massive. In China, a leading ride-hailing company handles 30 million rides a day. India is at just 3 million. Given India’s varied infrastructure and lower disposable incomes, we may need multiple categories to scale to that level. That’s an exciting challenge.
You pioneered user-side subscriptions. What’s next?
As a SaaS platform, we avoid pricing intervention, keeping control with users and captains. ‘Pass’ for autos ensures guaranteed bookings and zero cancellations, but we aren’t interested in discounting. Our focus is on maximising value, not expanding ‘Pass’ to other categories.
What impact has Rapido made in key markets?
In Karnataka alone, we’ve facilitated earnings of `6,700 crore for captains, paid `400 crore in taxes and created a million jobs. Next year, we’re adding 80,000 more jobs, including 25,000 for women. Our upcoming ‘Pink Taxi’ will cater exclusively to women, driven by women. Currently, 4-5% of our captains are female.
How are initiatives like q-commerce and airport pooling faring?
Airport ride-pooling launches in Bengaluru by March. We’ve identified supply-side issues like low earnings on return rides and believe our pricing model will solve them. Quick commerce, in tie-ups with Instamart, Blinkit and Zepto, has seen 20,000 deliveries in just a few months.
What’s your outlook on funding and IPO plans?
We are on track to achieve our profitability target by FY25. Operationally, we’ve been profitable for some time, Ebitda profitability has kicked in. We have sufficient cash reserves and will consider market conditions before deciding on an IPO.
How do you view the regulatory environment?
We’re seeing positive changes, both centrally and at states’ level. The proposal to classify motorcycles as ‘contract carriage’ under the Motor Vehicle Act reassures our captains. Maharashtra, previously opposed to bike taxis, is becoming more open. We’ve always complied with rules, and if laws like yellow number plates are introduced, we will support our drivers in transitioning.
Any plans to expand into buses or other categories?
We’re always exploring innovations in affordability. While there’s no definite timeline, buses and other transport categories are on our radar.
