Rapido Will Launch Cab Service In The Middle Of 2024
Rapido entered the cab aggregator space on Tuesday with the announcement of the launch of its new cab service, ‘Rapid Cabs.’ The company already offers bike taxis and three-wheeler passengers to its existing customers. With the launch of the cab service, Rapido will now be in close competition with the leading players in the cab aggregator market, Ola, and Uber. Other players in the market, such as electric vehicle (EV) based BluSmart, and InDrive, are also looking to enter the market but have a limited presence.
Rapido Will Launch Cab Service, Soon
Rapido launched its cab service about a month ago in Hyderabad and declared that the pilot was off to a “fantastic” start. The online taxi services in India were estimated to be worth Rs 30.72 billion in the fiscal year 2020 and are expected to witness a compound annual growth rate (CAGR) of 12,93% between the fiscal years 2021 and 2023, and will reach a value of Rs 55.15 billion by the end of the next fiscal year. There is a huge untapped market potential in this sector. Ola and Uber are the two most prominent players in the ride-sharing space in India, and they have also established themselves as the go-to choice for cab services in India. Before they entered the market, the cab industry was largely unorganized and was run by single taxi operators.
While it may not be the first movers in the industry, Rapido can rely on its existing customers and the ever-growing demand for these services. It can also aim to offer a better travel experience since neither Ola as well as Uber has been able to provide consistent quality in terms of affordability, proximity of cabs, professional drivers, and above all safety. The two companies have also been at odds with the drivers who have been demanding better remuneration for a long time. Rapido Cabs started with a 100,000-vehicle fleet. The company also aims to resolve the issue of remuneration of the drivers of Uber and Ola.
Rapido currently operates in over 100 cities and has almost 10 million customers and 100 million rides. The company has raised approximately $310 million to date and is backed by Nexus Venture Partners, WestBridge Capital, and others. While the company has not yet disclosed its FY23 financial results, the FY22 numbers show that the company is facing a lot of challenges. The company’s revenue from operations grew by 91.5% in FY22 to Rs 144,8 crore from Rs 75.6 crore in the previous year. However, to achieve this 90% growth, the company had to spend more than twice the amount as compared to the previous year. As a result, the company’s losses in FY22 increased by 2.6 times to Rs 439 crore. The company’s cash outflows in FY22 also increased by 2X to Rs 437 crore.
