Rapido Launches Cab Services To Race With Uber, Ola - SarkariResult

News: Rapido, the renowned bike taxi and three-wheeler passenger service, has made a strategic move into the cab aggregator market by unveiling its latest cab service, ‘Rapid Cabs.’ With this expansion, Rapido is now positioned to compete directly with industry giants like Ola and Uber. The debut of Rapido’s cab service in Hyderabad just a month ago has proven to be highly successful during its initial trial phase.

Untapped Potential in the Market

In the fiscal year 2020, the Indian online taxi services market held a valuation of around Rs 30.72 billion. Projections suggest a notable compound annual growth rate (CAGR) of 12.93% from fiscal years 2021 to 2023, with an anticipated value of Rs 55.15 billion by the conclusion of the subsequent fiscal year. This signals a substantial untapped potential within the sector.

Aiming to Provide a Better Travel Experience

At present, Ola and Uber maintain a stronghold in the ride-sharing realm in India; however, they have encountered challenges in ensuring consistent affordability, proximity of cabs, professionalism among drivers, and, most importantly, ensuring safety. Rapido has set its sights on tackling these issues, aspiring to enhance the overall experience for both passengers and drivers.

Rapido’s Presence and Backing

Rapido has established its presence in over 100 cities, catering to nearly 10 million customers and facilitating an impressive 100 million rides. The company has garnered substantial support, securing approximately $310 million in funding from investors including Nexus Venture Partners and WestBridge Capital.

Financial Challenges and Growth

Although the financial results for FY23 remain undisclosed, the FY22 figures shed light on certain challenges encountered by the company. Despite a notable 91.5% growth in revenue from operations, reaching Rs 144.8 crore in FY22, this expansion was accompanied by heightened expenses. Consequently, the company witnessed a substantial increase of 2.6 times in losses, amounting to Rs 439 crore in FY22. Simultaneously, cash outflows during the same period doubled, totaling Rs 437 crore.

A Competitive Landscape

Rapido’s foray into the cab aggregator market through Rapid Cabs introduces a new contender into the competitive landscape. Leveraging its established customer base and a commitment to enhancing the travel experience, Rapido aspires to carve out a significant share of the market. Nevertheless, the company must confront existing financial challenges and devise strategies to sustain growth while effectively managing expenses. The future will unveil how Rapido navigates and performs in this fiercely competitive industry.

FAQs

1. In what ways does Rapido set itself apart from Ola and Uber?

Rapido distinguishes itself by prioritizing a superior travel experience, focusing on factors like affordability, the proximity of cabs, the professionalism of drivers, and ensuring passenger safety.

2. Across how many cities does Rapido provide its services?

Rapido operates in more than 100 cities throughout India.

3. What is the total funding amount that Rapido has secured?

Rapido has successfully raised around $310 million in funding.

ncG1vNJzZmivp6x7tK3RpJiroZWtrq56wqikaKqRpbalu4ylmK6mk52ytHnCmplmq5Wnw6qvxKxkraddp66ksYywoK2gXaqvpr6MqKOaZ2VnhXODlQ%3D%3D