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'We handle close to 3 million rides daily, making us one of the largest players in this segment.'
Ride-hailing unicorn Rapido, which recently announced plans to expand operations to 500 cities, aims to deepen its presence in Tier-II and Tier-III cities.
In January 2025 alone, the company expanded to 50 cities.
Rapido's Co-Founder Pavan Guntupalli, in an interview with Udisha Srivastav, shares insights into the company's expansion strategy, competition, diversity, employment initiatives, and the push towards green mobility.
What is Rapido's timeline for expanding into 500 cities?
Since our inception in 2015, we have aimed to take our innovation beyond the top metro cities.
We do not want to be restricted to the top seven to 10 cities.
We have expanded to nearly 120 cities and continue to grow.
Currently, we complete around 3 million rides daily, with over 35 per cent coming from Tier-II cities.
In smaller cities like Guntur and Jorhat, we handle nearly 10,000 rides a day.
As of this month, we have already expanded to 50 cities and plan to complete the 500-city expansion within the next two quarters.
How has service diversification impacted Rapido's market share?
We handle close to 3 million rides daily, making us one of the largest players in this segment.
While the industry has seen cross-category expansion, our motivation has always been impact-driven.
Our entry into autos and cabs follows a distinct business model aimed at increasing driver earnings, unlike traditional structures that curbed their income.
We lead the two-wheeler and three-wheeler segments, and are steadily growing in four-wheelers, currently clocking close to half a million rides.
With competitors like Ola and Uber entering the bike taxi segment, how does Rapido plan to stay ahead?
As pioneers of the bike taxi concept, our focus has never been on competition but on leveraging technology to enhance efficiency and affordability for customers while ensuring higher earnings for captains. That remains our goal.
How do you see Rapido over the next five years?
For the past decade and the next five years, our vision remains consistent -- creating employment at scale.
Currently, we generate over 1.5 lakh jobs per month, translating to 18-20 lakh jobs annually, placing us among the largest employment generators in the country.
Additionally, we are committed to increasing women's participation.
We recently launched the “Rapido Pink” initiative to boost the number of women captains within the 20 lakh jobs we create annually.
What progress has been made on Rapido's all-electric bike taxi plans for Delhi?
Currently, around 5 per cent of our Delhi fleet is electric, achieved through partnerships and on-boarding electric vehicle (EV) owners.
We have more than 1,000 EVs on our platform and are collaborating with 12 industry players, from startups to large enterprises, to accelerate EV adoption.
While transitioning the entire fleet to electric by 2025 would be ambitious, we are taking gradual steps in that direction.
Several states have raised regulatory concerns regarding bike taxis. How is Rapido addressing this?
Rapido is the only player in the country with over 10 operational licences.
Our approach is straightforward -- wherever a regulatory framework exists, we work with the government, apply for the necessary licences, and comply with the rules.
In states where policies are still being formulated, we actively engage with authorities to help shape the framework.
Prosus is reportedly looking to acquire 5% stake in Rapido. Can you provide an update? Are you planning to raise more funds?
This is still under process. Once details are finalised, we will be in a better position to share updates.
We prioritise sustainable impact and are currently profitable.
With sufficient capital reserves, we do not require external funding at this stage.
Our expansion will be executed through a cost-efficient strategy.
Feature Presentation: Rajesh Alva/Rediff.com
