Rapido’s Subscription Model Doubles Users, Cuts Costs by Half

Rapido, 18 months after launching its subscription model, has seen its customer base double and the cost of acquiring them fall by 50%. The company said the model has improved efficiency and lowered spending on customer acquisition.

Subscription Over Commission

Rapido replaced the earlier commission-based setup with a subscription plan where drivers pay a small fee only for the days they use the platform. Under the previous model, drivers paid about 25% of their trip earnings as commission, which affected their income and made rides costlier for passengers. The new approach has drawn more drivers and helped increase the number of rides.

Customer Trends

About 60% of Rapido’s business now comes from users who take more than one service, bike taxis, auto-rickshaws, or cars on the platform. Reports indicate that this overlap has helped the company bring down its overall marketing and acquisition costs. The subscription model has also led to a steady rise in daily active users across different cities.

Profitability and Growth

Rapido is currently operationally profitable, meaning its daily operations generate enough revenue to cover running costs. The company said it is a year away from turning fully profitable. Rapido operates in over 300 cities and plans to expand to 500 cities within the next 12 months, aiming to reach nearly 500 million people.

IPO and Capital Plans

The company is not seeking new funding at present and has enough reserves to manage fixed costs. It plans to be IPO-ready by next year but will make a decision based on business conditions rather than timelines.

Read More:Uber Joins Ola, Rapido with Subscription Model to Boost Driver Retention

Conclusion

The subscription model, first introduced by Bengaluru-based Namma Yatri, is now being adopted by larger players. Uber India recently announced it would roll out a similar setup for its car, auto, and bike drivers across the country, signalling a shift in how ride-hailing platforms operate in India.

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