Why Rapido Chose Bikes and Never Looked Back

In 2014, three Indian entrepreneurs set out to transform intracity logistics with The Karrier.

They had a fleet of 300 vehicles and partnerships with giants like Flipkart.

But logistics was slow-paced, and the founders had bigger dreams. They wanted speed and scale to their business. And, a unicorn was born - Rapido.

But, why pivot from trucks to bikes? Traffic jams, expensive cab rides, and slow public transport - India's urban commuters know this story all too well.

Moreover, 75% of vehicles on the road are two-wheelers.

Why pay ₹200 for a cab when you can get there faster for just ₹60?

Rapido's bike taxis swiftly gained popularity, particularly in Tier 2 and 3 cities by striking a chord with price-conscious customers.

The founders weren’t just solving for customers; they were building for the drivers too.

Rapido ditched commission-based earnings (like Ola and Uber) and introduced a daily access fee model.

This allowed drivers to retain a larger share of their earnings alongside building trust and loyalty.

India’s 20 crore+ bike owners, including students and part-time workers, found this model appealing.

Rapido also partnered with Swiggy and Zepto, enabling drivers to earn extra through deliveries during off-peak hours.

This multi-income strategy ensured steady earnings for Rapido’s growing pool of driver partners.

Rapido’s growth trajectory has been nothing short of remarkable.

From 500 rides a day in 2016, they now handle over 20 lakh+ daily rides in 2024.

With a strong presence in Tier 2 and Tier 3 cities, they’ve captured the hearts (and wallets) of small-town India.

But, Rapido didn’t stop at bikes.

They expanded into auto-rickshaws and even cab services, with autos now contributing 40% of revenue.

In Hyderabad, Rapido has already captured a 23-25% market share in the cab segment, showing they’re ready to take on the big players.

As Rapido grows, it continues to reshape the mobility market.

Uber dominates the cab space with 50% market share, followed by Ola at 34%, but Rapido has already carved out 14%.

In the auto-rickshaw space, Uber holds the top spot at 40%, but Rapido follows closely at 31%, leaving Ola at 26%.

The bike-taxi segment, however, is where Rapido has its stronghold, with 56% market share, and Ola and Uber following far behind.

The ride to success wasn’t without bumps and initially, investors were sceptical.

Rapido faced 75+ rejections before securing funding, and sceptics doubted whether women would feel safe on bikes.

Regulatory hurdles and loose onboarding processes also raised some eyebrows.

Their biggest challenge remains sustainability.

The fixed-payment model limits revenue potential, and regulatory ambiguities around their classification as a “software provider” make them vulnerable to policy changes.

Amidst all of this, Rapido’s vision remains crystal clear: affordable, reliable rides for all.

With over 443 crores in FY23 revenue (up from just 42.6 crores in FY20), the company is already clocking some serious numbers.

With a presence in over 100 cities, a customer base exceeding 10 million, and a network of over 1 million captains, Rapido is set to dominate India’s urban mobility landscape.

It’s about transforming how India moves.

However, it would be very hard to deny that Rapido has laid the foundation for a faster, more inclusive ride-hailing future and the wheels are already in motion.

Sources:

Economic Times
Business Today
The Arc Web
Economic Times
AJVC
DNA