Rapido’s cost-saving measures also included a 16.9% reduction in employee costs to Rs 172 crore and a 10.8% decrease in marketing expenses to Rs 214 crore in FY24. Total costs, including technology, support services, legal, and rent, amounted to Rs 1,066 crore.
The company’s bike taxi service continues to drive growth, accounting for over 50% of total rides. This expansion in service offerings, combined with strategic marketing efforts, has significantly boosted the platform’s visibility, customer acquisition, and ride volumes.
Founded in 2015 by IIT alumni Aravind Sanka, Pavan Guntupalli, and PESU alumnus SR Rishikesh, Rapido was initially launched as “Karrier” after the founders faced challenges with commuting in Bangalore, one of India’s most traffic-congested cities. They realised that two-wheelers, such as motorcycles and scooters, could navigate the city’s dense traffic more efficiently than cars, making them a preferred mode of transport for short-distance travel.
Rapido operates on a peer-to-peer business model, connecting customers who need a ride with independent two-wheeler riders or captains who are willing to provide the ride. In December 2023, it also launched cab services in some cities.
In September, Rapido bagged USD 200 million in a Series E funding round led by existing investor WestBridge Capital, which turned the ride-hailing start-up into a unicorn with a valuation of USD 1.1 billion.
(With inputs from PTI, Online Desk)