How Rapido is Getting More Success than Uber and Ola in India

How Rapido is Getting More Success than Uber and Ola in India

The mobility technology business in India has grown exponentially over the past decade while being largely unorganized.

The lack of investment in public transportation, coupled with rising expectations for ease of use and low costs, is partly to blame.

The number of people using shared mobility services is expected to reach 15 million by 2025.

More growth in secondary markets will give more than 3 million drivers on multiple platforms a reliable way to make money, which will help the economy.

As the Indian market has expanded over the years, new subsectors have emerged. The mobility industry in India is expanding in step with the rest of the world.

For example, quick traction is a locally adapted feature that can be found not only on motorcycles but also on bikes and tricycles.

Bicycles and cars have seen huge increases in sales and market share since the COVID-19 pandemic.

What Exactly is Rapido?

Aravind Sanka was about to shut down his local company, the carrier, because of rising costs and frustration with the growing number of customers.

His friends Pavan and Rishikesh suggested that they use motorcycles to get around the traffic jams in Bangalore.

Because of this inspiration, they looked into consumer habits in the city and came up with Rapido.

Pavan Guntupalli, Rishikesh SR, and Aravind Sanka started the Rapido bike taxi aggregator in 2015.

It was started in Bangalore with the goal of making a service that was fundamentally and practically different from Ola and Uber.

The aggregator prioritized hiring people with motorcycle licenses and provided a way for them to sign up and validate their information.

Rapido was cognizant of the challenges created by the escalation of traffic. Customers’ wait times and financial investment would inevitably rise.

This knowledge helped them prepare for safe and enjoyable motorcycle rides.

The company’s motto, “Ride Solo,” shows that it wants to give customers services that they can count on and that are easy and cheap to use.

They care about safety, so they require that all motorcycles for captains be made no earlier than 2010.

Rapido’s Difficulties

Rapido’s popularity went through the roof when more than 10,000 people downloaded it in the first month after it came out.

But Ola and Uber have both adapted their services for the two-wheeler market because they saw an opportunity.

Market leaders had a lot of money and could easily undercut Rapido’s prices, which was a big problem for the new company.

Rapido’s cash reserves were running low, so Aravind made a pitch to potential backers. With Ola and Uber already established in the industry, however, investors were hesitant to put money into Rapido.

By the year 2016, the outlook for Rapido was gloomy, and the company was on the verge of folding.

The Growth and Revival of Rapido

Hero Honda’s CEO, Pawan Munjal, saw how promising Rapido could be. He not only gave Rapido money, but he also gave them advice on how to best carry out their plan to grow.

Ola and Uber both did well in big cities, but they paid less attention to smaller cities and towns. Rapido concentrated their efforts here.

They made a place to live that met the needs of secondary and tertiary urban centers. They devised a strategy with two parts:

Give people who don’t have bikes a way to get to work every day.
Give people a way to earn extra money while using their bikes to get to work.

With this great strategy, Rapido was able to get more of the market and become more well-known.

Sustainment and Tracking Tools for Rapido

The Rider Motoring System (RMS) monitors every trip, checking to see if drivers have proper identification, how they interact with passengers, and how fast they drive.

Their most loyal riders are often awarded for their loyalty. This keeps them motivated to always give their best to their clients.

When the feedback loop is small and focused, Rapido shines. They have a smaller network than Ola and Uber, but they put more emphasis on quality of service.

Longevity of Rapido

Comparing the business models of Ola and Uber shows that Rapido’s approach is not that different. The technology capabilities of Uber and Ola are oftentimes significantly superior.

Rapido has not only kept a good business plan but also made it work well in this kind of setting. The company is a good place to work because it is easy to run and gives its drivers good tools.

Rapido created and continues to manage its system of incentives for its drivers. This fosters confidence among its drivers and maintains momentum in serving its clients.

Uber and Ola, on the other hand, promised drivers a rewards program but haven’t kept it up.

Drivers appreciate the flexibility of Rapido’s withdrawal method, which allows them to take out the money as often as once per day.

While companies like Uber and Ola have rigid financial structures, this one may be adjusted as needed.

Conclusion

In a way, what Rapido has done is not completely unbelievable. They’ve just accomplished their goal less traditionally and unconventionally. When the door closes, they simply go through the window.

Thanks to their perceptiveness, they were able to recognize the opportunity that had arisen and seize it. Just what do they preach in their ideology? Put your energy toward developing your strengths.

Frequently Asked Questions

How did Rapido compete against Ola and Uber?

Though both Ola and Uber performed well in major metropolitan areas, they paid less attention to secondary and tertiary hubs.

So, Rapido set up a regional ecology that was designed to meet the needs of secondary and tertiary urban centers.

Rapido was able to plan and carry out motorcycle tours well because they knew the problems customers faced because of traffic.

What are some affordable bike ride apps?

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