In a recent announcement, Rapido revealed its plan to launch ‘Pink Bikes’—an all-women bike taxi service in Karnataka by the end of 2025. These bikes will be driven by women riders, catering exclusively to women customers, aiming to offer a safer and more comfortable ride experience.
Rapido’s journey in India’s shared mobility market is nothing short of inspiring. While giants like Ola and Uber dominate the space, Rapido has quietly but steadily made its mark by doing things differently. Starting as a bike-taxi service, it’s now grown into a serious competitor across multiple verticals, thanks to bold strategies and innovative thinking.
How It All Started
In 2015, three young tech enthusiasts—Aravind Sanka, Pavan Guntupalli, and Rishikesh SR—were frustrated with the everyday hassle of commuting in India’s congested cities. The limited availability of reliable last-mile transportation, coupled with expensive cab rides, inspired them to build a solution that could bridge the gap. Thus, Rapido was born with a mission to offer affordable, convenient, and fast transportation through bike taxis.
But the road wasn’t easy. At the beginning, the founders faced skepticism from investors and customers alike. Bike taxis were a relatively new concept in India, and convincing people to ditch autos and cabs for a pillion ride on a two-wheeler was a challenge. Regulatory hurdles added another layer of complexity—many states didn’t even have clear policies on bike taxis.
However, the founders believed in their idea. They started small, launching operations in Bengaluru, where traffic congestion was a daily nightmare for commuters. Initially, they used their personal bikes to ferry passengers around the city. Slowly, they started onboarding more riders, offering flexible part-time opportunities to anyone with a bike and a valid license.
Aravind Sanka, an IIT alumnus, brought his experience in business strategy and operations, while Pavan, with his tech background, focused on building a robust app and user-friendly experience. Rishikesh, the youngest co-founder, concentrated on expanding driver supply and managing customer operations. Their complementary skills helped Rapido grow quickly, even in a competitive market.
Rapido began with a focus on bike taxis, offering affordable rides in congested cities where bikes were a faster option. The model worked exceptionally well in smaller cities (tier-2 and tier-3), where the demand for quick and cheap rides was high. Over time, Rapido captured 60% of the bike-taxi market, building a solid foundation for its next steps.
But bike taxis were just the beginning.
The Challenge: Competing with Giants
In its early days, Rapido had its share of challenges. Regulatory hurdles, customer trust issues, and competition made it tough for the startup to grow. However, the founders focused on operational efficiency, affordability, and driver partnerships. Rapido’s low-cost rides and easy booking system quickly gained popularity, especially in tier-2 and tier-3 cities where public transport options were limited.
In the auto-taxi segment, Rapido faced stiff competition from Ola and Uber—companies with deep pockets and the ability to fund new services through profits from other verticals like cabs. It was a David vs. Goliath situation, but Rapido was ready to fight back with smart strategies.
To compete, it needed to increase its driver supply and expand its services, all while keeping costs under control.
Expanding the Horizon
Rapido launched Rapido Local and Rapido Store, offering quick local deliveries in over 100 cities. This helped diversify its revenue streams and reduce its dependence on ride-sharing alone. The move worked well, giving Rapido a steady inflow of business from deliveries while continuing to grow its auto services.
By mid-2022, Rapido had onboarded 100,000 drivers and completed over a million auto rides across 25 cities. The company’s revenue nearly doubled each year, reaching INR 144.77 crore in FY22, compared to INR 75.61 crore in FY19.
The success was further boosted by a $180 million funding round, positioning the company for rapid expansion.
Taking on Ola and Uber in the Cab Market
In 2023, Rapido made a bold move by entering the cab taxi business. But unlike Ola and Uber, which charge drivers a 20-25% commission, Rapido offered something unique—a flat fee model.
For just Rs 500 per month, drivers could keep all their earnings up to Rs 10,000 without worrying about high commissions. This driver-friendly model was designed to attract more drivers to join Rapido, especially those hesitant to work under the commission-based structure of other platforms.
The results were immediate. In Hyderabad, Rapido quickly captured 23–25% of the cab market share, with 15% of drivers being completely new to the profession.
Not Just Cabs and Bikes—An Urban Mobility Ecosystem
Rapido didn’t stop at cabs. It partnered with ONDC to offer metro ticket booking in Chennai and is exploring bus ticketing services with Zingbus. The vision is clear: to create a comprehensive urban mobility ecosystem that caters to all travel needs.
With $70 million in new funding and revenue growing to INR 443 crore in FY23, Rapido is scaling fast. The company now serves 20 million customers and completed 307 million rides last year.
A Promising Future
India’s shared mobility market is highly competitive, but Rapido is carving its own path. The company is expected to close FY24 with INR 600 crore in revenue, just behind Uber India’s mobility revenue of ~INR 700 crore. It’s also close to turning profitable—a rare milestone in the startup world.
Rapido’s current valuation is ~10x its revenue, which reflects the high growth expectations. If it grows at just 50% annually, its valuation could reach 7.5x its current revenue. For comparison, Uber’s global valuation is around 4.5x its revenue—making Rapido a startup to watch.
With 1.7 million daily rides and an 18% market share, Rapido has proven that it’s more than just the third player in India’s mobility market. From an underdog fighting for survival, it has grown into a serious force challenging the biggest names in the industry.
Final Thoughts
Rapido’s story is a lesson in innovation, persistence, and smart execution. It shows how a company with limited resources can still win by thinking differently and staying close to its customers’ needs. As it continues to expand, Rapido is on track to become a key player in India’s shared mobility market—offering affordable rides while reshaping urban transportation.
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