Rapido (company)

Last updated

Rapido
Roppen Transportation Services Private Limited
FormerlytheKarrier
Company type Private
Industry Transportation
Founded2015;9 years ago (2015)
FoundersAravind Sanka
Pavan Guntupalli
SR Rishikesh
Headquarters
Bangalore, Karnataka
,
India
Number of locations
100+ cities (2022)
Area served
India [1]
Services Bike taxi
Auto rickshaw
Taxicab
Third-party logistics
RevenueIncrease2.svg₹473 crore (US$57 million) (FY23) [2]
Website rapido.bike

Rapido is an Indian ride-hailing service, which primarily operates as a bike taxi aggregator. Its offerings also include auto rickshaw and taxicab hailing, parcel delivery, and third-party logistics services. [3] Founded in 2015, the company is based in Bangalore and operates in over 100 cities, but has run into legal troubles in several locations where bike taxis are not legal. [4]

Contents

Rapido raised $200 million in funding led by WestBridge; valuation hits $1.1 billion

History

The company was founded in 2015 as theKarrier [5] by two IIT alumni and a PESU alumni – Aravind Sanka, Pavan Guntupalli, and SR Rishikesh. [6] In September 2018, reports were that Rapido has over 15,000 registered riders, with average rides of 30,000 per day. [7] Subsequently, Hero MotoCorp chairman Pawan Munjal and former Google India head Rajan Anandan picked up stakes in the company. [8]

In 2019, Rapido co-founder Aravind Sanka claimed that the company has created more than 500,000 jobs in India. [9] In November 2019, the company claimed to have 1 crore registered users. [5]

After the breakout of COVID-19 pandemic, Rapido expanded its operations in logistics, providing last-mile delivery of goods for local businesses and e-commerce companies. [10] [11] In October 2020, Rapido launched on-demand auto rickshaw hailing services. [12]

In April 2022, the company received $180 million in a funding round led by Swiggy, raising the company's valuation to $830 million. The Series D round of funding also saw participation of TVS Motor Company, Westbridge, Shell Ventures, and Nexus Ventures. [13] [14]

In 2023, Rapido introduced taxicab hailing on its app. [15]

In September 2024, the company raised $200 Million in Series E at $1.1 Billion valuation thus making it an unicorn company. [16]

Business model

The Rapido app allows the user to book a ride, after which a rider (called "Captain") arrives at the location. The fare includes a base fare of ₹20 in addition to ₹3 for every kilometer of the ride. [17] [18] [19] The "Captains" need to register through the Rapido-Captain app and get validated by submitting the required documents. They can use motorcycles, scooters, or e-bikes, but the vehicle cannot be older than 2010.

Rapido has run into legal troubles in various cities. In October 2018, several bikes were seized in Coimbatore as Rapido was operating without a permit from the transport department. [20] In July 2019, Madras High Court banned Rapido's operations across Tamil Nadu, [21] while Rapido iOS application was removed from the App Store for violating local laws. [22] In August 2019, the court lifted the ban and allowed the company to resume services in the state until the state government framed new regulations for bike taxi services. [23]

In February 2019, more than 200 bike taxis belonging to Rapido and Ola Cabs were seized in Bangalore as the state transport department declared bike taxis to be illegal. [24] In April 2019, more than 170 Rapido bikes were impounded and an investigation was launched against Rapido by the city cyber crime police. [25] Despite the ban, the company was reported to be illegally operating in Bangalore, with Rapido Captains disguised as food delivery executives. [26]

In February 2020, Rapido was banned across Assam, after the transport department found that the company was operating without commercial license or permit from the DTO. [27] In October 2020, shortly after it commenced operations in Mumbai, the city's transport authorities asked the company to stop its services as it was operating without the government's permission. [28]

In January 2022, RTO officials in Bangalore seized over 120 Rapido bikes, after receiving complaints from the city's cab and auto rickshaw unions. [29] In February 2022, Pune RTO officials seized 65 motorbikes belonging to Rapido riders, declaring bike taxi operations to be illegal in the state of Maharashtra. [30]

News

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References

  1. ↑ "Bike-taxi service Rapido to double its presence to 150 cities in 6 months". The Hindu Business Line. Retrieved 3 November 2019.
  2. ↑ "Rapido posts Rs 443 Cr revenue in FY23; losses surge 54%". EnTrackr. 13 January 2024.
  3. ↑ "Rapido shifts focus to logistics; sees 25% business recovery and aims for 1.5x growth next year over FY20". Business Insider. Retrieved 4 December 2020.
  4. ↑ "Rapido targets to more than double user base". The Hindu. 7 January 2022. Retrieved 29 April 2022.
  5. 1 2 "Startup Street: Rapido Begins Its Delhi City Service Amid Odd-Even Curbs". Bloomberg. Retrieved 3 November 2019.
  6. ↑ "Indian Motorbike-Taxi Service Rapido Aims To Reach 1 Million Rides Each Day In 2019". Forbes. Retrieved 4 April 2019.
  7. ↑ "Bike taxi app Rapido to launch new features for visually-challenged commuter". The Hindu. Retrieved 4 April 2019.
  8. ↑ "Pawan Munjal, Rajan Anandan invest in bike taxi operator Rapido". Economic Times. Retrieved 4 April 2019.
  9. ↑ "We took a bold step to focus on tier-2 cities". Livemint. Retrieved 3 November 2019.
  10. ↑ SH, Salman (22 June 2020). "Bike taxi startup Rapido launches logistics service for businesses". mint. Retrieved 4 December 2020.
  11. ↑ Mukherjee, Sharmistha. "Rapido turns to hyperlocal delivery now". The Economic Times. Retrieved 4 December 2020.
  12. ↑ SH, Salman (15 October 2020). "Bike taxi app Rapido forays into on-demand autorickshaw service". mint. Retrieved 4 December 2020.
  13. ↑ "Rapido raises $180 mn in funding round led by Swiggy, TVS Motor". www.fortuneindia.com. Retrieved 19 April 2022.
  14. ↑ Singh, Manish (15 April 2022). "Swiggy backs bike taxi platform Rapido in $180 million funding". TechCrunch. Retrieved 15 April 2022.
  15. ↑ Singh, Jagmeet (27 October 2023). "India's bike taxi startup Rapido is getting into the cab business". TechCrunch. Retrieved 26 November 2023.
  16. ↑ Sharma, Samidha (5 September 2024). "Rapido raises $200 million in funding led by WestBridge; valuation hits $1.1 billion". The Economic Times. ISSN   0013-0389 . Retrieved 11 September 2024.
  17. ↑ "Bike ride, a click away". The Hindu. Retrieved 4 April 2019.
  18. ↑ "Rapido kick-starts its operations in Warangal". Telangana Today. Retrieved 4 April 2019.
  19. ↑ "Rapido plans to launch "power pass" for regular commuters". Economic Times. Retrieved 4 April 2019.
  20. ↑ "Bike taxi service runs into dead end". Times of India. Retrieved 4 April 2019.
  21. ↑ "Explainer: Why bike sharing app Rapido has been banned across Tamil Nadu". The News Minute. Retrieved 3 November 2019.
  22. ↑ Upadhyay, Harsh (19 July 2019). "Rapido app lifted from Apple app store following Madras HC ban order". Entrackr. Retrieved 28 December 2020.
  23. ↑ Correspondent, Legal (2 August 2019). "Rapido can continue operations in T.N.: HC". The Hindu. ISSN   0971-751X . Retrieved 7 December 2020.{{cite news}}: |last= has generic name (help)
  24. ↑ "Bike taxis are illegal says Karnataka transport dept, impounds 200 bikes". The News Minute. Retrieved 4 April 2019.
  25. ↑ "Bad news for Bengaluru commuters: RTO officials issue notice to Rapido for 'illegal bike taxi service'". Asianet. Retrieved 28 December 2020.
  26. ↑ "Bike taxis hide behind aggregators, operate illegally under the radar". New Indian Express. Retrieved 30 April 2020.
  27. ↑ "Assam Transport Department bans Rapido-Bike Taxi Service in Guwahati, Office sealed". The Sentinel Assam. Retrieved 16 April 2020.
  28. ↑ "RTO asks Rapido to shut bike taxi service". Mumbai Mirror. Retrieved 28 December 2020.
  29. ↑ Mathew Philip, Christin (1 February 2022). "120 bike-taxis seized in four hours in Bengaluru, Rapido cries foul". The Times of India. Retrieved 29 April 2022.
  30. ↑ "Pune RTO Seizes 65 Motorcycles Being Used For Bike Taxi By Rapido". Punekar News. 5 February 2022. Retrieved 29 April 2022.
  31. ↑ Shivangini (6 December 2023). "Rapido launches cab services to race with Uber, Ola". mint. Retrieved 26 April 2024.
  32. ↑ Desk, CXOtoday News (7 February 2024). "Rapido Collaborates With ONDC for Seamless CMRL Metro Ticket Bookings". CXOToday.com. Retrieved 26 April 2024.{{cite web}}: |last= has generic name (help)
  33. ↑ Raghavan, Ranjani (4 April 2024). "Westbridge Capital likely to double down on Rapido". mint. Retrieved 26 April 2024.
  34. ↑ "Lok Sabha elections 2024 Bengaluru: Rapido offers free rides to senior citizens, differently-abled voters in city". Hindustan Times. 25 April 2024. Retrieved 26 April 2024.
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