Rapido Overtakes Uber in India with 70 Million Monthly Users

Why is Rapido suddenly overshadowing Uber and Ola in India? It's using a strategy so simple yet impactful that competitors should take note.

Rapido's Numbers Speak Volumes

Rapido, founded in 2015, now boasts an impressive 70 million monthly active users and 3 million drivers. That's no small feat. Compare that to Uber's 1.4 million drivers in India, and it's clear Rapido's approach is working. While Uber relies heavily on a global workforce of 34,000 employees, Rapido operates with just 800. Yet, it manages to hold its ground, building an economic model around India's unique market conditions.

Here's the thing: affordability is king in India. Rapido charges an average of 60 to 70 cents for a two-wheeler ride. It capitalizes on the popularity of two-wheelers and auto-rickshaws instead of four-wheelers, which are considered premium in India. This lower-cost structure is central to its success, making its services accessible to a broader audience.

Context: A Strategic Market Shift

India's ride-hailing market is massive, yet less than 5% of the population uses these services. This untapped potential presents a golden opportunity. Uber entered India in 2013, focusing on a car-centric model similar to its Western strategy. Rapido, however, took the road less traveled by tailoring its offerings to local preferences. They focused on two-wheelers, a popular choice in densely populated cities like Bengaluru.

Economically, this pivot pays off. Instead of taking a commission per ride, Rapido charges drivers a flat daily fee. This model encourages more drivers to join, scaling the network rapidly. That's how Rapido has grown its driver base from 1 million to 3 million in just a couple of years.

Insiders Weigh In

According to Rapido CEO Aravind Sanka, this isn't just about competition. It's about filling a gap. "We knew that India is a price-sensitive market," he said, explaining why their focus on affordability beats the more premium offerings of Uber and Ola. Rapido's model isn't just another ride-hailing service. it's built to resonate with Indian consumers.

Uber, meanwhile, has acknowledged Rapido as a significant competitor. But is Uber rethinking its strategy? So far, they haven't commented. Traders are watching closely as the dynamics continue to shake up the ride-hailing world in India. Could Uber pivot to a similar model?

What's Next for Ride-Hailing in India

So, what does this mean for the future? The market's low penetration rate suggests more growth is ahead. With 95% of the population not yet using these services, there's room to expand. But who will dominate? Rapido isn't profitable yet, but its focus on local needs could solidify its lead.

One thing to watch: How will global giants like Uber adapt? They face a choice: adjust to local tastes or risk losing more ground to nimble players like Rapido. Any major moves in this direction could be a catalyst for further shifts in the market.

The ride-hailing race in India is far from over. However, Rapido's strategy offers a glimpse into how localized solutions can outmaneuver even the most established brands.