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Rapido
The Indian-shared mobility landscape was chiefly focussed on cars since they were commonly working in the other markets, including the US and China.
However, AdvantEdge’s founder, Kunal Khattar, addressed an untapped, massive opportunity in creating a new category, bike taxis.
India is inhabited by a huge population of two-wheelers with approximately around 250 million registered two-wheelers on roads.
With only 45 to 50 million cars on Indian roads, two-wheelers are the dominant mode of transport for the majority, not a luxury, but a necessity.
Nearly 20 percent of two-wheeler owners (approximately 50 million) are unemployed, students or working part time.
Inception of Rapido
Acknowledging the cultural and economic reality of India, Khattar fished out a promising opportunity that could monetise this latent capacity.
Many, especially young men, were hunting hard for flexible income opportunities. Rapido offered them to earn, using their own bikes.
Rapido’s one-time solution spared Indians the high upfront costs of purchasing a commercial car, as required by platforms like Uber and Ola.
Rapido’s Winning Formula
Asset-Light Model
Rapido doesn't own vehicles, which reduces capital expenditure and operational complexity.
Platform-Based Approach
By enabling unemployed youth, students, and part-time workers,many of whom already own bikes, to earn flexible income as "Captains," Rapido unlocked a massive underutilized asset pool.
Scalability
The model facilitates rapid geographic and operational expansion without proportional investment.The main objective is to empower existing two-wheeler "captains" rather than creating or managing an in-house fleet.
Low Operational Costs
No fleet ownership lifts off the burden of high maintenance, staffing, and logistics costs.
Capital Efficiency
Requires less upfront investment as compared to traditional car-based ride-sharing models (e.g., Uber,Ola ).
Mobility Market Fit
Particularly tailored for India’s transportation landscape, where two-wheelers are the dominant mode of travel.
Why Users Prefer Rapido
Affordability First
- Only about 12% of Indian households have the purchasing power to even consider buying a car priced at Rs 10 lakh or more, reported Maruti Suzuki Chairmman, R.C. Bhargava.
- Bike taxi rides are 30–60% cheaper than car-based rides, making them pocket-friendly and easily accessible for daily commuters.
Convenience in Congestion
- Two-wheelers can readily navigate traffic faster than cars, critical in India's densely packed cities.
- Ideal for short to medium-distance trips where speed matters
Perceived & Practical Safety
- Helmets, GPS tracking, and safety protocols are taken into consideration for creating a safety-packed for the riders.
Rapido’s Winning Strategy That Reshaped Urban Mobility
Disciplined Focus Over Diversified Chaos
- While big players chased the process of quick cash expansion, Rapido resisted the rush to scale everywhere and simply stayed focused on bike-taxis
Widely used in Bengaluru, with only a small test market in Gurugram, prioritizing product strength over geographic sprawl.
With this solid determination, Rapido built a robust product and secured massive market leadership within its vertical.
Challenged the Capital-Heavy Norm
Rapido identified and solved a specific, underserved mobility pain point with a practical, scalable solution.
Having a deep understanding of Indian urban transport, Rapido designed a relevant product-market fit.
AdvantEdge’s seed investment in 2016 yielded a 50x return—a testament to both the model and the team’s efficacy. Rapido's revenue from operations grew 46.3% to Rs 648 crore in FY24 from Rs 443 crore in FY23, its consolidated financial statements sourced from the Registrar of Companies (RoC) show.
Recognising the need to diversify, Rapido expanded the market from bikes to cars in 2023. It is currently serving as a wider broader mobility platform while continuing to dominate the bike-taxi segment.