With more offices, schools and colleges opening across the country, Rapido aims to triple the number of users transacting on its platform in the next 18 months.
“There are many examples these days of refusing cab drivers and auto-rickshaw customers,” said Arvind Sank, cofounder at Rapido. “It’s driving the adoption of bike taxis.”
The company recently secured $52 million in funding and plans to use the resources to expand its operations.
Rapido currently offers bike taxi services in 100 cities and auto-rickshaw services in 26 cities. Sanka told ET that with 150,000-160,000 bikes and 70,000 autos running on its platform, Rapido is getting 10 million orders every month.
Rapido is also working towards electrifying its fleet in Delhi and Bengaluru in line with government initiatives and plans to electrify a quarter of its two-wheeler fleet by the end of next year.
“Not everyone will immediately switch to an electric vehicle – they (bike taxi operators) will look at various aspects, including the availability of financing solutions, infrastructure and resale value, when making the decision,” Sanca said. “The total cost of ownership has to be understood. We are working with intermediary companies who will help our captains to drive an electric two-wheeler either through hire or lease. We will act as a demand generator.”
The bike taxi and auto businesses accounted for 55% and 25% of the company’s revenue, respectively, with the remaining 20% coming from hyperlocal delivery services, which came to the venture last year to maintain operations, providing a new market for mobility solutions. was in the midst of a severe disruption in demand. After the outbreak of Covid-19.
The contribution of three business verticals – bike, auto and delivery – is expected to remain the same going forward.
Rapido has tied up with 25 small and large aggregators for delivery services, and nearly 90% of the business comes from Swiggy, Zomato and JioMart.
The company recently raised $52 million in its latest round from new investors including Shell Ventures, Yamaha, Creed founder Kunal Shah, Spotify India CEO Amarjit Singh Batra and Positive Moves Consulting. The round also saw continued support from existing investors Pawan Munjal, Chairman and Managing Director of Hero Group, Westbridge, Nexus Venture and Everblue Management.
Rapido will use the resources to make strategic investments in innovation, technology, people and supplies, Sanca said.
“We are operating a profitable business and are well capitalised,” he said. “We will invest in technology, engage people to strengthen the leadership team, spend more on user development and enter new cities through brand-building initiatives.”
The company currently has 15 million transacting users on its platform and aims to more than triple this to 50 million in the next 18 months.
Rapido, which began operations in 2015, has previously raised $80 million from Westbridge AIF, Nexus Ventures, Saber Investments, Skycatcher LLC, Base Fund and Integrated Growth Capital.