Rapido identified three major gaps in the cab business when it emerged as a small startup in 2015 after Uber and Ola had already established themselves.
Video Courtesy: Think SchoolFirstly, the average ride cost of Ola and Uber ranges from Rs 200 to Rs 400. This is by far a lot of money considering the economic situation of individuals in the country. After a certain point, the market for these cab services slowed down and remained stagnant. Rapido understood the low-ticket price segment market gap that these companies failed to capture. Secondly, India is a huge market for two-wheelers, with more than 220 million active bike owners. Out of them, 20% are unemployed, students, or part-time workers. Rapido recognized them as their workforce. Lastly, the public transportation system is inefficient, and the traffic is a major headache for travelers. Two-wheelers are best suited for riding in traffic-dense areas. While OLA and Uber faced problems with cash drains, discounts, incentives, and an increase in the expectations of their drivers,Rapido projected the company as a secondary source of income for anyone who just has a two-wheeler. One can be a student, part-time worker, or anyone who just got some free time and wants to monetize it.The riders can earn anywhere from Rs 200 to Rs 500 a day, depending on the hours and location. This small amount makes them super happy because, after covering their fuel costs, they are still able to earn Rs 300 a day. The expectations of Rapido drivers never went higher than that. But there was the problem of government regulations that did not allow bikes to be used as taxi services. Rapido has smartly shown no signs of its presence in the market by not giving branded tee shirts, helmets, etc. to its riders. Soon, Rapido talked with the government and made the taxi cab legal. Today, Rapido has over 4 lakh rides a day and 60,000 active users.
