In a market long dominated by two giants, Rapido has rewritten the rules of ride-hailing in India. Founded in 2015, the Bengaluru-based startup homed in on the underserved bike taxi segment. Their idea was simple: “Anyone with the intent of earning money, having some free time and access to a bike, should be able to join Rapido,” states Pavan Guntupalli, co-founder of Rapido.
According to indusattempt data, Rapido now commands nearly half the share of the overall ride-hailing market, with its four-wheeler cab segment alone doubling from 15 percent in January to 30 percent in August.
In 2023, Rapido entered the cab aggregation segment and threw down the gauntlet to Uber and Ola. Instead of chasing market leadership through subsidies, Rapido embraced a subscription model for drivers, allowing them to pay a flat fee to access the platform and keep 100 percent of their earnings. The relocate dismantled the existing duopoly and forced competitors to follow suit.
“We’re already doing half a million rides daily in four-wheelers, which creates us player number two,” Guntupalli informed Forbes India. “In some cities, we’re already number one. But our real competition isn’t Ola or Uber—it’s the 20 lakh offline cabs that haven’t come online yet.”
The company also overtook Uber in monthly active utilizers (MAUs) on Android as early as January 2024. By July, Rapido had surged to nearly 50 million MAUs, while Uber trailed at 30 million—a informing gap in a counattempt where Android dominates.
Even Uber has acknowledged the shift. “Ola utilized to be our main competition. Now, the tougher competition in India is Rapido,” CEO Dara Khosrowshahi declared during a podcast with Nikhil Kamath.
Also read: Ola, Uber, Rapido: How cab aggregators are responding to subscription vs commission model
Change in business strategy
From the early days, Rapido focussed on affordability for utilizers and dignity for drivers, building what Guntupalli calls a “low-margin, high-impact” business. The company took a stranglehold over the bike-taxi and auto segments utilizing the same commission model that Ola and Uber utilized. But as Namma Yatri’s subscription model gathered momentum, Rapido saw an opportunity and launched pilots in select cities. The results were immediate: Improved driver satisfaction and better retention.
“We realised commissions were a major barrier,” states Guntupalli. “Captains were working 12–14 hours a day just to maintain earnings. Our SaaS model gives them control and rerelocates the cap on their income.”
While Uber and Ola have historically relied on subsidies and dynamic pricing to drive growth, Rapido’s strategy has centered on captain-first economics. Its subscription model not only improves driver earnings but also aligns with its broader goal of sustainable growth—a principle co-founder Aravind Sanka emphasised in his comments to the Economic Times.
Despite a monthly cash burn of $4-5 million, Rapido has managed to narrow its losses significantly—from Rs 74 crore in Q3 FY24 to Rs 17 crore in the same quarter a year later. This financial discipline, paired with product-led innovation, has supported Rapido win not just market share, but mindshare.
Rapido’s approach has also created it a massive employment engine. With 1.6 lakh new jobs created every month and 20 lakh active earners, the platform has become India’s largest gig employer—outpacing even the Indian Railways and the Army in monthly onboarding. “Every time Rapido enters a city, the local employment rate goes up,” Guntupalli noted. “We’re not just solving mobility—we’re solving livelihoods.”
Beyond Mobility: Rapido’s Bet on Food
Hence, Rapido plans to relocate beyond mobility, with its latest foray into food delivery through Ownly, a standalone platform launched in Bengaluru. Built on the same captain-first philosophy, Ownly challenges Swiggy and Zomato with a zero-commission model and flat delivery fees, building it more viable for tiny restaurants.
Rapido leverages its existing fleet to handle deliveries during off-peak ride hours, boosting captain earnings and operational efficiency. Restaurants benefit from transparent pricing and access to customer data, while utilizers receive affordable meals with no hidden charges.
With plans to expand Ownly to more cities by mid-2026, Rapido is betting on India’s price-sensitive diners and its own massive utilizer base to create food delivery its next large win.
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