We'll begin by telling the story of Rapido & Their Founders, who started up and converted failure into success.
How
did Rapido become India's Leading Bike Rental Company?
Rapido
India's Leading Bike Rental Company Gets Big Success. The company has compete and beats big players in the cab booking field, such as OLA and Uber. Rapido
has achieved great accomplishments in a short period of time.
Rapido
has created over 5 Lakhs+ jobs all over India in his Bike Rental Business
model. According to Wikipedia Rapido has more than 30 thousand+ rides per day.
Table Of Content
- Founders of Rapido & How did they get the Start-up idea
- Rapido starting Achievements & Failures
- Rapido Business Strategies & Business model
- How Rapido can Beat OLA & Uber in Bike Rental Business
- What is the future of Rapido & What are its future plans?
- What lesson we can Learn from Rapido for Implementing in Our Business
Who are the Founders of Rapido and How did they get this start-up idea?
Rapido Founders are Aravind
Sanka, Rishikesh SR, and Pavan Guntupalli. One day Arvind was facing
traffic problems in Bangalore, and he shared his problem with his friends. They
then came up with the idea of starting a bike rental service in Bangalore that
was public-friendly (which means it helped to solve traffic problems as well as
keep it affordable) and with this plan, they began working on the project.
Rapido Starting Achievements and Failures?
After
studying consumer behavior, they developed their platform and launched their
application, which got a positive response with more than 10 thousand downloads
within a month. They understand the problem and opportunity, but after 2 to 3
months, they were faced with a major problem when Ola & Uber also entered
this business model.
As Rapido was facing problems in competing with OLA
& Uber, they decided to raise funds from different investors and approached
many investors, but they also told them how can you beat OLA & Uber, but
Pawan Munjal (CEO of Hero Moto Corp.) decided to invest and suggested to focus
on Tier 2 and Tier 3 Cities or Medium and Small Cities.
Rapido Business Strategies and Business Model
- The first Strategy (LOCAL ECOSYSTEM) - Rapido has understood the problem of Tier 2 and Tier 3 cities, and they found that the majority of travelers from these kinds of cities use BUS and AUTO, so they decided to be as cost-efficient as possible for their customers.
- The second strategy (Engaging Local Customers): - Rapido understands that customers need a safe and fast service, so he decided to take advantage of local people who want some extra income and were ready to join the team. This way, local people get jobs, and Rapido gets a valuable price for its customers
- Third Strategy (Rider Monitoring System): - Rapido Monitors Rider speed and provides an alert if Rider is riding at Overspeed. Rapido also always seeks customer feedback, so he gives some reward points to riders based on their feedback.
In this way, Riders also became satisfied and gave
their best to customers in order to get more Reward Points, and customers were
also satisfied as they gave favourable ratings to Riders.
Rapido Business Model
Basically,
Rapido helps people book rides according to their location, and the captain (or
bike driver) comes and picks up the customer from their location and drops them
off at their destination.
The
Revenue Model of Rapido Business consists of two main aspects. The company
claims that its revenue increased by 12X in 2019.
- First, commission-based model: - Rapido works as a commission-based model in which he charges 20 percent of the total fare as its commission. As Rapido works as a Bridge between Bike Rider and Customer, he charges the commission.
- In the case of the B2C Commission: - the company has tied up with various companies for shipping and courier services, particularly with logistic companies like: - Grofers, Zomato, Swiggy, etc.
- Advertising:- Rapido also advertises different companies on their APP.
Paytm Share Hits all-time Low, it Falls up to 75% from its IPO price, Why Paytm Share is Falling?
How Rapido Beats OLA & Uber in these Fields.
Rapido
knows that he cannot capture the entire market that is why he only focuses on
& improves on limited fields so that he will work with proper planning and
efficiency.
Rapido
works in Limited Cities and Improved himself with Customer Feedback so that he
can compete with other companies. As OLA & Uber were Taking Smart &
Large cities and For Medium and Small Cities, they cannot work Properly because
the people were Not preferring OLAs for high and unfair prices.
What is the Future of Rapido & How Can It Grow in the Future?
Basically,
Rapido is always analyzing customer behaviors and trying to improve himself
with Customer Demand. The Motorcycle Rent business will grow from 168 million
USD from 2020 to 2024 and it can be up to 3 billion in 2030.
Rapido
is working on Bike Sharing Start-ups. With this plan, Rapido would be able to tie up with companies like Zomato, Swiggy, and many other companies that
deliver products.
Also,
the company has Entered an E-Commerce and Logistic Department for Delivering
Products in Bikes and other Vehicles.
What Lesson Can We Learn from Rapido and His Business Strategies?
The
lesson we learn from this Start-up story is that we need to focus on innovation
and upgrading our business ideas to compete with market players. In order to
survive in the market, we have to analyze customer behavior and experience.
We need to improve ourselves so that we can satisfy and give full attention to
our customers.
Rapido's
second lesson is to start small (or small areas), try to expand to a large
scale, and then ultimately succeed. Rapido is focusing on Tier 2 and Tier 3
cities, so it is making a name for itself in the market. If it focuses directly
on Large Cities, then it will get stuck in competition with the large players
and never succeed.
Rapido
works in one field and then shifts into another field and also improves himself
with Customer Feedback and analysis of Customer Behaviours.
1 Comments
keep going sir
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