After getting refused by 75 investors, an IITian still decided to continue his work in his start up. That small venture now become a well-known name in start up world. We are talking about none other than Rapido. But it was not a hire a bike to reach your destination first.
At first, he worked for delivery of product from one place to another. In this article we will know about the business model and case study of Rapido. At present it gave more than 5 lakhs ride. They are growing in 10 times every year. How this company managed to beat Ola and Uber, we will know this in this article.
The founder of Rapido is Mr. Arvind. If you know the traffic of urban cities like Bangalore or Mumbai, you will know how it feel stuck in one place. Similarly, one day Mr. Arvind was get struck in Bangalore traffic. Then he thought even if people hire Ola or Uber or they have their own car, people still stuck in the traffic.
He discusses this with his friend Pawan and Hrishikesh. While talking to them they got an idea of bike ride service. From there the idea of Rapido started.
In 2015 after his failure of first start up carrier they find that bikes can remove the problem of getting stuck in traffic jam as it can move in from anywhere. So before they started their journey, they studied a lot about consumer behaviour. They find that apart from super wealthy people, there are mostly super savours. They want to save something from everything.
They find that people will love to save money if they are offered bike service instead of car service.
After starting the Rapido, they got more than 10,000 downloads. But a big incidents happen in which Ola and Uber launched their own bike riding service.
Big blow for Rapido
Ola and Uber have so much money that they could give insane amount of discounts to their customers. This was giving Rapido a big financial blow. Then they have to go again to the investors to raise funds.
But everyone asked the same question that how they will compete with big giant like Ola and Uber. At last CEO of Pawan Munjal came to rescue and allotted some funds from his own net worth.
He also gave advice to focus on particular niche rather than full industry. Rapido took the advice seriously. Ola and Uber get huge bike riding customer in big cities but they were not that successful in the smaller cities. As most people are already used to rapido services.
Rapido created their own ecosystem in smaller cities. They found there are lot of people wanted bike riding service as public transport was very crowded and autos took the amount they wanted. There are also a lot of bikers who wanted to earn extra money. Rapido become a middle person here and combined them both.
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Already Rapido started to add female riders with them so that they can get more female customers. They also tied up with Zomato and Swiggy for delivery services. So there is huge potential of growth of Rapido in future.