Bike app Rapido now has cabs too, and it might just be better than Ola and Uber

Rapido is gearing up to compete with Uber and Ola by venturing into the cab business. With an initial fleet of 1,00,000 vehicles, this strategic move by the Bengaluru-based company aims to address diverse commuting needs, fostering business growth and expansion.

What

• On Tuesday, Rapido launched 'Rapido Cabs', entering the cab service alongside its existing bike taxis and auto rides.
• This move puts Rapido in direct competition with Ola and Uber, while electric vehicle-focused companies like BluSmart and InDrive are also in the mix, though with a smaller presence.

• Where: The new 'Rapido Cabs' ride-hailing service is now available in Delhi, NCR, Bengaluru, and Hyderabad, featuring a fleet of about 1 lakh cabs. 
• The company is moving ahead with ambitious plans to extend its reach to 35 cities by September 2024.

How will Rapido cabs work?

• At the lauch event of Rapido Cabs, held in Gurgaon on Tuesday (December 5, 2023), Rapido's co-founder Pavan Guntupalli stressed that it stands out by guaranteeing the "lowest price" and adopting a "zero commission" model for drivers.
• The company's platform promised to act as a smooth intermediary, connecting drivers and customers without controlling the marketplace.
• Rapido Cabs will work on a system where drivers subscribe by paying fees. 

Different from Ola and Uber

Rapido Cab’s subscription-based approach diverges from the commission-centric model of Ola and Uber. 

• In this SaaS (Software as a Service) model, drivers pay a flexible subscription fee correlated with their earnings from the platform.
• For example, when drivers earn Rs 10,000 via the Rapido app, a Rs 500 subscription fee is applied. 
• Previously, a Bengaluru-based auto-app, Namma Yatri, gathered lot of praise for following the same kind of subscription model.

• This model aims at connecting drivers with direct customer payments, bypassing company intervention, said co-founder at the launch.