Rapido Zooms Past Uber & Ola in India - Here’s How It’s Winning the Ride-Hailing Race & Gearing Up For An IPO

Bengaluru-based ride-hailing startup Rapido is quickly emerging as a serious challenger to well-established players like Uber and Ola in India, thanks to its affordable motorcycle taxis and disruptive pricing strategy. According to a recent Bloomberg exclusive, the company is now growing faster than its bigger rivals and has achieved profitability for the first time—a key milestone as it prepares for a potential public listing.

Rapido's business model 

Unlike Uber and Ola, which charges a commission from each ride, Rapido follows a low-cost subscription model.  Its drivers pay as little as Rs 9 a day to use the platform and keep all the money they earn. This approach has helped Rapido bring in a large number of drivers and offer rides starting at just Rs 20—making it especially popular with cost-conscious Indian customers. 

“Two-wheelers are to India what four-wheelers are to the U.S.,” said co-founder Pavan Guntupalli told Bloomberg, adding, "Even in a small village, a farmer or his son will have a two-wheeler.”
In 2023, Rapido’s app was downloaded 33 million times, compared to Uber’s 21 million and Ola’s 19 million, according to Appfigures data cited by Bloomberg. The platform now facilitates around 4.3 million rides per day, which is three times more than Ola and about 40% more than Uber, claimed Rapido. 

Also Read: Rapido to attract auto drivers with zero commission | Republic World

Expansion and listing plans

Even though Uber has made a strong push into India—seeing its 1.4 billion people as key to future growth—Rapido’s localized approach is connecting better with regular users. Supported by investors like WestBridge Capital, Prosus, and Nexus Venture Partners, Rapido has raised $200 million and was last valued at $1.1 billion. 

It operates in over 250 Indian cities and plans to expand further into smaller towns. While co-founders say an IPO is definitely on the cards, they are currently focused on sustainable long-term growth.

Stumbling blocks

Despite its successful business model, Rapido is dealing with regulatory hurdles. It recently suspended its bike taxi service in Karnataka after the High Court ruled that private motorcycles cannot be used for commercial purposes. Maharashtra has also imposed similar restrictions, banning non-electric bike taxis.

The company is also under scrutiny over whether its zero-commission model should be subject to GST. Nevertheless, Rapido continues to focus on safety improvements, such as introducing women-only cabs and installing seatbelts in auto-rickshaws.
“We are middle-class Indians ourselves,” said co-founder Aravind Sanka, adding that this gives them a better understanding of what the average Indian commuter needs.