Rapido (company)

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Rapido
Roppen Transportation Services Private Limited
FormerlytheKarrier
TypePrivate
IndustryTransportation
Founded2015; 6 years ago (2015)
FoundersAravind Sanka
Pavan Guntupalli
SR Rishikesh
Headquarters
Bangalore, Karnataka
,
India
Number of locations
75+ cities[1] (2019)
Area served
India
ServicesBike taxi
Auto rickshaw
Third-party logistics

Rapido is an Indian bike taxi aggregator and logistics service provider based out of Bangalore.[2] Founded in 2015, the company operates in over 75 cities across the country, but has run into legal troubles in several places.

History[]

The company was founded in 2015 as theKarrier[3] by two IIT alumni and a PESU alumni – Aravind Sanka, Pavan Guntupalli, and SR Rishikesh.[4] In September 2018, reports were that Rapido has over 15,000 registered riders, with average rides of 30,000 per day.[5] Among those who have stakes in Rapido are Hero MotoCorp chairman Pawan Munjal and former Google India head Rajan Anandan.[6]

In 2019, Rapido co-founder Aravind Sanka claimed that the company has created more than 500,000 jobs in India.[7] In November 2019, the company claimed to have 1 crore registered users.[3]

After the breakout of COVID-19 pandemic, Rapido expanded its operations in logistics, providing hyperlocal delivery for local businesses and e-commerce companies.[8][9] In October 2020, Rapido launched on-demand auto rickshaw hailing services in 14 cities.[10]

Business model[]

The Rapido app allows the user to book a ride, after which a rider (called "Captain") arrives at the location. The fare includes a base fare of ₹15 in addition to ₹3 for every kilometer of the ride.[11][12][13] The "Captains" need to register through the Rapido-Captain app and get validated by submitting the required documents. They can use motorcycles, scooters, or e-bikes, but the vehicle cannot be older than 2010.

Legal issues[]

Rapido has run into legal troubles in various cities. In October 2018, several bikes were seized in Coimbatore as Rapido was operating without a permit from the transport department.[14] In July 2019, Madras High Court banned Rapido's operations across Tamil Nadu,[15] while Rapido iOS application was removed from the App Store for violating local laws.[16] In August 2019, the court lifted the ban and allowed the company to resume services in the state until the state government framed new regulations for bike taxi services.[17]

In February 2019, more than 200 bike taxis belonging to Rapido and Ola Cabs were seized in Bangalore as the state transport department declared bike taxis to be illegal.[18] In April 2019, more than 170 Rapido bikes were impounded and an investigation was launched against Rapido by the city cyber crime police.[19] Despite the ban, the company was reported to be illegally operating in Bangalore, with Rapido Captains disguised as food delivery executives.[20]

In February 2020, Rapido was banned across Assam, after the transport department found that the company was operating without commercial license or permit from the DTO.[21] In October 2020, shortly after it commenced operations in Mumbai, the city's transport authorities asked the company to stop its services as it was operating without the government's permission.[22]

References[]

  1. ^ "Bike-taxi service Rapido to double its presence to 150 cities in 6 months". The Hindu Business Line. Retrieved 3 November 2019.
  2. ^ "Rapido shifts focus to logistics; sees 25% business recovery and aims for 1.5x growth next year over FY20". Business Insider. Retrieved 4 December 2020.
  3. ^ a b "Startup Street: Rapido Begins Its Delhi City Service Amid Odd-Even Curbs". Bloomberg. Retrieved 3 November 2019.
  4. ^ "Indian Motorbike-Taxi Service Rapido Aims To Reach 1 Million Rides Each Day In 2019". Forbes. Retrieved 4 April 2019.
  5. ^ "Bike taxi app Rapido to launch new features for visually-challenged commuter". The Hindu. Retrieved 4 April 2019.
  6. ^ "Pawan Munjal, Rajan Anandan invest in bike taxi operator Rapido". Economic Times. Retrieved 4 April 2019.
  7. ^ "We took a bold step to focus on tier-2 cities". Livemint. Retrieved 3 November 2019.
  8. ^ SH, Salman (22 June 2020). "Bike taxi startup Rapido launches logistics service for businesses". mint. Retrieved 4 December 2020.
  9. ^ Mukherjee, Sharmistha. "Rapido turns to hyperlocal delivery now". The Economic Times. Retrieved 4 December 2020.
  10. ^ SH, Salman (15 October 2020). "Bike taxi app Rapido forays into on-demand autorickshaw service". mint. Retrieved 4 December 2020.
  11. ^ "Bike ride, a click away". The Hindu. Retrieved 4 April 2019.
  12. ^ "Rapido kick-starts its operations in Warangal". Telangana Today. Retrieved 4 April 2019.
  13. ^ "Rapido plans to launch "power pass" for regular commuters". Economic Times. Retrieved 4 April 2019.
  14. ^ "Bike taxi service runs into dead end". Times of India. Retrieved 4 April 2019.
  15. ^ "Explainer: Why bike sharing app Rapido has been banned across Tamil Nadu". The News Minute. Retrieved 3 November 2019.
  16. ^ Upadhyay, Harsh (19 July 2019). "Rapido app lifted from Apple app store following Madras HC ban order". Entrackr. Retrieved 28 December 2020.
  17. ^ Correspondent, Legal (2 August 2019). "Rapido can continue operations in T.N.: HC". The Hindu. ISSN 0971-751X. Retrieved 7 December 2020.
  18. ^ "Bike taxis are illegal says Karnataka transport dept, impounds 200 bikes". The News Minute. Retrieved 4 April 2019.
  19. ^ "Bad news for Bengaluru commuters: RTO officials issue notice to Rapido for 'illegal bike taxi service'". Asianet. Retrieved 28 December 2020.
  20. ^ "Bike taxis hide behind aggregators, operate illegally under the radar". New Indian Express. Retrieved 30 April 2020.
  21. ^ "Assam Transport Department bans Rapido-Bike Taxi Service in Guwahati, Office sealed". The Sentinel Assam. Retrieved 16 April 2020.
  22. ^ "RTO asks Rapido to shut bike taxi service". Mumbai Mirror. Retrieved 28 December 2020.
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