[Product Roadmap] How Rapido reworked its technique to make sure operational effectivity and a worthwhile journey


When Aravind Sanke, Rishikesh SR, and Pavan Guntupalli put Bengaluru-based bike taxi sharing startup Rapido on the street in 2015, it wasn’t India’s first app-based journey hailing platform. The concept had already change into mainstream, because of Ola and Uber

Rapido additionally wasn’t the primary bike-sharing platform in India. There have been different gamers similar to Baxi and M-Bike; Ola and Uber had additionally launched their bike taxis. 

However the others bumped into hassle: Ola and Uber needed to limit operations to some cities, Baxi pivoted to a supply mannequin, and M-Bike shut store. 

Rapido, then again, managed to outlive the regulatory tug of battle and develop. It now has round 5,00,000 service suppliers, and claims to be serving over 10 million clients. It has greater than 20 million app downloads and 15 million paid transactions. 

Current in near 90 cities, the startup might be worthwhile in Bengaluru, Hyderabad, and Delhi by the top of this fiscal yr. Different cities might be contribution-level optimistic by the top of the yr. 

Product Roadmap - Rapido

Founders of Rapido

How did Rapido do it?

“If you begin, you simply deal with fulfilling orders. Initially, our focus was on constructing the two-way market successfully. It took us a month to achieve 500 rides per day and get the vital mass of 10,000 downloads,” Aravind says. 

As per paperwork filed with the Registrar of Firms (RoC), the ride-hailing startup recorded a 13x leap in income to Rs 10.64 crore in FY19, in opposition to a income of Rs 79.90 lakh posted for the earlier monetary yr.  

Income surged, however Rapido additionally posted a 5x enhance in losses for this monetary yr. Final yr, the corporate posted a lack of Rs 10.34 crore; within the monetary yr ended March 31, 2019, losses widened to Rs 53.29 crore. 

However there was substantial development.  

“Within the final two years, we grew constantly at 20 % month on month. From April 2018 to October 2019, now we have seen 60x development,” Aravind says. 

However to achieve this scale, the staff needed to rework the app to go well with the wants of each, the consumer and the ‘Rapido captain’. 


The Rapido development graph

Begin with hitting the snooze button 

All sorts of bikes – scooters, bikes, e-bikes – can be found on the platform. Rapido captains and pillion riders are given helmets to make sure security. 

On the commuter aspect, Rapido works like another taxi-booking app. Customers have to enroll and enter pickup and vacation spot factors. As soon as the reserving is confirmed, the title, photograph, and bike variety of the captain is shared with them.


The Rapido founders quickly realised that clients deal with reliability and availability of the captain

“When you open the app, it’s essential to discover a car. Initially, due to the use case, demand was all the time greater than provide. When no bikes had been obtainable, the app would say there have been no captains,” Aravind says.

In a couple of weeks, nevertheless, the staff obtained client suggestions that folks had been keen to attend.

The very first function they added was a “snooze” button. If a client is in search of a journey and doesn’t discover one, hitting the snooze button prompts the app to search for a Captain for the following 10 minutes. This helped in client retention. 

By 2016 finish, the staff determined to increase to a brand new metropolis, however realised that the structure wasn’t constructed for scale. 

Product Roadmap - Rapido

The present Rapido App

Studying from experiences and errors

“For the primary three years, we had no product supervisor; buyer and captain suggestions had been our product roadmap. Even at the moment our product managers discuss to customers and captains daily at the very least for an hour,” Aravind says. 

Nonetheless, numerous variables come into the image as techniques mature

Rapido added a logistics layer, tying up with hyperlocal gamers for supply. That meant making the app and techniques appropriate and seamless for deliveries and rides, and understanding the distinction between the 2. 

“We learnt from our errors and a few that others made. We targeted on core companies: on how the order administration works, which captain ought to go the place, and as soon as they settle for the journey, how the ETA logic comes into play,” Aravind explains.

He provides that operational effectivity is vital to the enterprise. You possibly can’t have folks on floor “because the enterprise is of low ticket dimension however of excessive volumes” and “excessive quantity companies have to be extremely operationally environment friendly”.  

“We’re in numerous cities, and no matter the volumes in these cities, now we have two folks in every metropolis to maintain on-boarding, advertising, and every little thing. A whole lot of issues have been constructed with information to know if a metropolis is performing nicely or not,” Aravind says. 

Rapido’s common ticket dimension is Rs 50 to Rs 60, and it will get a 20 % margin on every journey.

“These are small ticket sizes with massive volumes. The machine ought to let you know what it’s essential to do, and use native nuances to boost determination making. We attempt to automate something you do for per week or two,” Aravind says. 

Deal with security and captain on-boarding

One of many greatest challenges that Rapido confronted was altering consumer perceptions

“A whole lot of folks had been cautious that two-wheeler rides weren’t secure. So we launched insurance coverage from day zero. The app was in-built with a mechanism to trace the velocity of the captain. He could be deactivated if he went past a selected velocity,” Aravind says. 

There have been instances the place the patron wouldn’t get helmets or have complaints about captains. 

Rapido constructed a suggestions loop on the app that allowed the consumer to immediately put in grievances that allowed the staff to take speedy motion.

“Earlier than that, we did numerous issues on the captain app to guarantee that on-boarding was seamless for captains. We on-boarded by way of calls, WhatsApp, or the Rapido app, the place the driving force shares particulars,” Aravind reveals.

This led a drop within the ft on road wanted to on-board captains. A centralised captain care centre ensured that the on-boarding occurred on-line

Aravind says Rapido was capable of launch in 25 cities in three months after increasing the scope of its techniques.

A twist to the present gig financial system 

Within the present gig financial system mannequin, drivers are paid as soon as per week, a fortnight, or a month. Nonetheless, Rapido realised that it was working with a special base of provide customers. 

“Many individuals had been trying to generate income with quick rides, and we didn’t need our cost mechanism to limit that,” Aravind says. 

The staff constructed a ‘redeem’ function on the captain app; this transfers no matter cash a captain makes into the ‘captain pockets’. S/he can then redeem the cash into a private checking account. 

“How a lot cash is deducted, how a lot cash the captain makes with each journey, and instantaneous funds helped us acquire belief,” Aravind provides. 

The direct cost labored very nicely when Rapido launched in Tier II cities like Ajmer and Mysore

Product roadmap - Rapido

The Cost half

Substituting the bus move 

Through the second yr of operations, the founders realised that majority of their customers had been utilizing Rapido for the every day commute, and had been used to the bus/metro move system.

“If somebody is committing to do x variety of rides in a month, we must always supply some advantages. That is after we launched the subscription service. Near 70 % of our Tier II customers have by no means used a ride-sharing product, and near 50 % of our volumes come from Tier II cities. Options like this assist customers in Tier II and III cities,” Aravind says.  

The subscription prices vary from Rs 99 to Rs 200 a month, and a 10 % or Rs 15 low cost is obtainable, relying on the package deal. 

The product could also be scaling and rising, however the dearth of readability on the regulatory entrance persists. Bike taxis are authorized in some cities; in others, there aren’t any clear guidelines concerning their operations. 

There could also be a protracted approach to go, however Rapido believes there was “numerous evolution”. 

Our core markets, Bengaluru, Hyderabad, and Delhi, will hit profitability within the subsequent three months whereas different cities might be contribution-level optimistic by the top of the yr,” Aravind says. 

(Edited by Teja Lele Desai)


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