By 2015, cab services like Ola and Uber had become popular in India. But they were expensive, and people still had to sit in long traffic jams. Even after paying high fares, passengers couldn’t save time- the very thing they were paying for.
That’s when Pavan got the idea for Rapido, instead of cars, he chose bikes. Bikes are faster in traffic and cheaper for short trips. He launched Rapido with the goal of helping people beat traffic and travel at low cost.
In 2015, Rapido became India’s first bike taxi service. And today, it’s a name known in almost every city.
How Rapido grew from rejections to a Rs. 9,600 crore company
Back when Ola and Uber ruled big cities like Delhi and Mumbai, Rapido decided to do something different. Instead of fighting them in metro cities, they focused on Tier-1 and Tier-2 cities, where people still faced daily travel struggles. Their idea? Let people travel quickly and cheaply on bike taxis which was perfect for office trips, markets, or short-distance rides.
Initially, Rapido charged just Rs 15 as a base fare and Rs 3 per km, making it affordable but challenging to turn a profit.
But starting Rapido wasn’t easy.
Pavan Guntupalli launched Rapido with two of his friends. The biggest challenge? Funding. Investors were already pouring money into cab companies like Ola and Uber. Nobody was ready to bet on bikes — back then, bike taxis were unfamiliar, and there were no clear rules or laws for this service.
Even worse, when Ola and Uber noticed Rapido’s idea, they launched their own bike taxi services. This made investors even more hesitant. They didn’t believe Rapido would survive, let alone succeed. Pavan and his team were rejected by 75 investors.
Then in 2016, their luck changed.
Pawan Munjal, the Chairman and MD of Hero MotoCorp, saw potential in Rapido and became their first big investor. Once that happened, more investors started showing interest.
With new funding, Rapido launched 400 bikes across Bengaluru, Delhi, and Gurugram. By January 2016, they had 5,000 users, and by the end of the year, that number grew to 1.5 lakh.
To attract customers, they kept things simple:
- Base fare: Rs. 15
- No commission from riders in the beginning
- Riders were proudly called “Captains”
This no-commission model made Rapido popular among both riders and drivers. Soon, they had over 50,000 Captains and 7 lakh users.
The app has been downloaded over 50 million times on Google Play and Apple Store, with around 7 lakh users and a team of 50,000 riders, or “captains.”
Rapido kept growing fast. By 2019, the company was doing around 70,000 trips a day. Today, Rapido operates in over 100 cities and has more than 5 crore app downloads.