Bike taxi startup Rapido has forayed into the cab segment, currently dominated by Uber and Ola, as it looks to expand its offerings and shore up revenue.
The Bengaluru-based startup is currently testing the response for cab services and has commenced a pilot in Hyderabad. It plans to introduce the services in other cities as well.
“At Rapido, we’re thrilled to share that our test run in Hyderabad for Rapido Cabs is off to a fantastic start. The city’s vibrant market has warmly embraced us, and the positive response is truly heartening. As we navigate our path forward, we are committed to keeping you closely informed about our progress and eagerly anticipate bringing our innovative services to other cities,” a Rapido spokesperson told Inc42.
The development was first reported by TechCrunch.
The publication also reported that Rapido is looking to integrate intercity bus ticket booking within its app in partnership with Zingbus.
Founded in 2019 by Prashant Kumar, Mratunjay, and Ravi Kumar Verma, Zingbus aggregates buses to offer a standardised intercity travel experience to customers. The Delhi NCR-based startup claims to have partnered with over 70 small and medium size bus companies and connect 300 cities daily with over 350 buses.
Rapido declined to comment on the partnership with Zingbus.
The development comes a day after it was reported that Rapido has begun rolling out a premium auto rickshaw service, Auto Plus, in Bengaluru.
Founded in 2015 by Rishikesh SR, Pavan Guntupalli, and Aravind Sanka, Rapido operates a platform that connects users with bike taxis. It also offers auto services and peer-to-peer delivery services via Rapido Local. It claims to have a fleet of 5 Mn bike taxis and 7 lakh auto-rickshaws. The startup claims to operate in over 100 Indian cities and have over 25 Mn app downloads,
While Rapido already competes with Uber and Ola, its entry in the cab segment would further intensify the competition for the companies which currently enjoy a dominant share in the cab services market.
The move to enter the cab segment is likely a move by the startup to grow its top line and user base. It is expected to help it draw new customers and retain the existing customers who might have to choose its competitors for availing cab rides.
Rapido’s net loss surged 163% year-on-year to INR 439.02 Cr in the financial year 2021-22 (FY22), while revenue from operations doubled to INR 144.77 Cr.
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