Latest news with #PavanGuntupalli
Mint
28-05-2025
- Business
- Mint
Uber, Rapido eye Goa entry as draft guidelines set stage for ride-hailing platforms
Ride-hailing platforms are preparing to enter Goa, a market they have long coveted but struggled to gain access due to resistance from local taxi unions. Now, the state's newly released Transport Aggregator Guidelines, 2025, could finally change that. The draft guidelines, published last week by the Goa government, lay out a formal regulatory framework for app-based taxi and bike taxi operators. It includes licensing conditions, fare regulations, timelines for driver payments, and crucially, mandates that the entire fare be paid directly to drivers, effectively banning platform commissions. The move marks a decisive shift from informal control to structured regulation in one of India's most tourism-dependent states. According to media reports, Goa received 10 million visitors in 2024. The Economic Survey for 2024-2025, meanwhile, projected Goa's population for 2025 at approximately 15.96 lakh. This tourism volume dwarfs the local population, resulting in an incredibly high tourist-to-local ratio. Also Read: Slow but steady: How quick commerce delivered an improbable success for Yulu Aggregators bullish 'We believe tourists as much as locals in Goa deserve more mobility choices, and there is already a strong existing demand for reliable ride options in the state," an Uber spokesperson told Mint. 'This regulatory update makes it possible for platforms like Uber to serve that demand more effectively and responsibly," the company added. It said it will submit formal feedback and collaborate with stakeholders to ensure the final framework supports drivers, riders, and Goa's economy. The draft guidelines are open for public feedback until 19 June. Rapido also appears bullish. 'I think the government recognizing the importance of developing a much more convenient and safer transportation infrastructure is crucial — it's a key element of tourism," said Pavan Guntupalli, co-founder of Rapido. Ola Electric declined to comment on the development. Analysts say Rapido's enthusiasm stems from its no-commission and SaaS (software as a service) based model, which analysts believe will give it a competitive advantage in the Goa market. 'Rapido's model is tailor-made for these guidelines, but Ola and Uber may have to adapt," Nikhil Dhaka, policy lead at Primus Partners, a consultancy firm. Also Read: Rapido eyes a bigger slice of the ride-hailing market with four-wheeler push Right fit Ola and Uber may, however, need to adapt their operational models to fit Goa. 'They will have to geographically tweak their models to suit Goa," said Amit Kaushik, managing director at automotive consultancy Urban Science. Platforms will have to contend with Goa's pronounced seasonality. There are peaks where demand is exponentially high, and then times when it's a complete dry season, said Kaushik. 'They have to be very careful — not just about how to operate, but when to operate," Kaushik added. Rapido says its flexibility gives it an edge. 'Whenever there's a lull, we enable our autos and bikes to participate in the delivery economy — not just as taxis, but also for couriers and deliveries," said Guntupalli. It claims to be well-positioned to meet the demands of Goa's evolving mobility market. 'One of the reasons Rapido shifted to a SaaS player is to enable the offline industry to come online," Guntupalli said. He added that the goal is to onboard existing players in the local ecosystem, 'We are minimizing barriers as much as possible so they can leverage our technology, products, and pricing tools." The guidelines are also likely to intensify competition with local digital incumbents like Goamiles, a government-backed ride-hailing service. According to a report by Herald Goa, the state has around 20,000 taxis of varying permits and services. The competition notwithstanding, the new guidelines present an opportunity for Goamiles to modernise its tech infrastructure, Dhaka noted. With scooter rentals being a major part of Goa's transport culture, platforms are exploring ways to integrate this user behaviour. Guntupalli said Rapido is open to exploring rental integration, emphasizing that the platform is not confined to one mode or model. 'If the user wants to ride, we'll provide a platform. If they want to rent, we'll look at that. We're not restricted by any moat," he said. However, trade unions in both North and South Goa have strongly opposed the guidelines, fearing that the government's push for app-based services will threaten their livelihoods, according to media reports. Also Read: Who pays for cancelled rides? Maharashtra's new cab rules stir industry debate
Mint
11-05-2025
- Business
- Mint
Rapido eyes a bigger slice of the ride-hailing market with four-wheeler push
Rapido is shifting gears. Known for its bike taxis, the ride-hailing company is now doubling down on four-wheelers as it chases a bigger share of India's cab market, which is dominated by Ola and Uber. 'Currently, we're north of 20% market share in four wheelers. We're looking to be at over 30% pan-India by the end of 2025," Pavan Guntupalli, one of Rapido's co-founders, told Mint in a telephone interview. Rapido also plans to double its presence across cities in India across segments this year. 'From our existing 120 cities, we will be going to 500 cities by the end of the year," said Guntupalli. The company did not respond to Mint's queries about which cities it is targeting for its four-wheeler growth, or how much it planned to invest in this expansion. According to research from equity advisory firm Equentis, as of December 2024, Uber dominated the cab category with 50% market share, with Ola sitting at 34% and Rapido at 14%. Baking in subscription model Rapido is banking on its 'unique" approach to the ride-hailing market for its four-wheeler push. Unlike incumbents Ola and Uber, which operate on a commission-based model, Rapido has taken a subscription-based approach or SaaS (software as a service) model. Instead of taking a cut from every ride, Rapido charges its drivers—referred to as captains—a fixed monthly fee to use its platform. Drivers have an option to choose between a daily, weekly and monthly subscription. 'When you start being a technology provider to a captain, he himself will maximise his earnings. He uses the tools that we provide and figures out how to maximise his earnings at a very nominal cost. This means that he has a lot more pricing power," said Guntupalli. Rapido claims this model has unlocked a new supply of drivers who had previously been reluctant to join the ride-hailing economy. According to the company, 15% of its driver base comprises individuals new to the sector, drawn in by the subscription model. 'We're tapping into a supply that wasn't interested earlier thanks to our SaaS model," said Guntupalli. Initially introduced with two-wheelers, the subscription model later extended to auto-rickshaws and, more recently, to four-wheelers. The company now claims to complete around half a million rides daily across its four-wheeler segment alone. Ola and Uber declined to comment on the number of cab rides they clock in a day. Equentis' research from December last year shows that Uber completed 8,40,000 rides across all categories daily, while Ola does 4,60,000 and Rapido does 3,20,000. Mint could not immediately verify the claims made in the report. Incumbents take notice Ola and Uber have only recently begun experimenting with more driver-friendly payment models. Uber, for instance, still retains online payment options for two-wheelers. The company began piloting a SaaS model for rickshaws last year, with the approach going live pan-India only in February this year. Similarly, Ola opted to go the same route with a launch in major metros last year, which has since expanded. Rapido says that it gives drivers all the leeway when it comes to charging for rides. 'Pricing as an element is something that we don't control. We give the tools to both riders and Captains to coordinate better," said Guntupalli. The key reason for protest in the ride-hailing space is the dominance of large incumbents, which often leads to unpopular practices like surge pricing, said Soujanya Sridharan, senior manager at public research firm Aapti Institute. Ride-hailing companies have faced criticism in several states, most recently in Maharashtra where the state's transport department proposed a cap on surge pricing. Also Read: Who pays for cancelled rides? Maharashtra's new cab rules stir industry debate Rapido says it gives drivers all the leeway when it comes to charging for rides. "Pricing as an element is something that we don't control. We give the tools to both riders and captains to coordinate better," said Guntupalli. Filling a gap Industry experts believe that despite the presence of incumbents in the market, there's more than enough space for new players. 'City infrastructure is being challenged, commutes are getting longer, and younger generations are shying away from buying cars, opting for asset-light living. As a result, ride-hailing is a great option," said an industry analyst declining to be named. 'Success will largely depend on execution capability." Analysts say Rapido's success in four-wheelers will hinge on three pillars: brand positioning, service quality, and safety. "They need to decide whether they'll stick to intra-city rides or venture into intercity. Will they focus on ICE vehicles, electric vehicles, or hybrids? These choices will shape their brand," the analyst noted. Service is going to play a key role in commuter acceptance of the company's four-wheelers. While the company started with a two-wheeler focus, expectations and demands from users when it comes to cabs are different: are they clean, does the AC work, do drivers arrive on time, do they ask for more money? 'The hope is that drivers will use that extra income to reinvest in their cars, something which has been a problem with other models," said Sridharan. Rapido believes its SaaS model can potentially be the deciding factor here, given their recurring fee structure. 'Our simple philosophy is that if our captains are happy, they will themselves provide a better experience to users," said Guntupalli. He claims that driver satisfaction scores are the highest in the industry. 'Drivers are trying to figure out a way to provide a better experience to riders to get better ratings and get more orders." On the safety front, Rapido says it offers both reactive and proactive measures of keeping track. Riders can share their trip status with contacts, and the company runs round-the-clock support team. Background checks and police verification are part of the onboarding process. 'For every late-night drop that happens, we proactively check whether the customer has reached safely," said Guntupalli. Also Read: Uber's lifeline off the table for BluSmart as EV depreciation becomes key contention Hedging bets Rapido's push into four-wheelers this year is also a hedge against regulatory uncertainty around two-wheelers. Last month, the Karnataka high court ordered a ban on bike taxis unless the state issues specific guidelines. Similar restrictions are under consideration in other states. 'With bike taxis facing increasing regulatory hurdles and legal challenges across multiple states, it's only natural for companies like Rapido to diversify their offerings. Expanding into the four-wheeler market allows them to hedge against the uncertainty surrounding the bike taxi sector," said an industry executive associated with the ride-hailing industry, on condition of anonymity. Bike taxis account for 50% of Rapido's revenue, with the remainder being split between three-wheelers and cabs, according to the company. 'I think survival is key and the transition to cabs is very much that. You're at least safe in the eyes of the law," said Sridharan arguing that even if their main income is shut off by regulation, the supplementary income from four-wheelers should be enough to 'keep the lights on". Founded in 2015 by Aravind Sanka, Pavan Guntupalli and Rishikesh SR, Rapido started as a bike taxi aggregator before enterting the three-wheeler market. The company entered the four-wheeler market in October 2023. Rapido's latest fundraise was a $30 million investment as part of a Series-E extension round led by Dutch investment firm Prosus. The company last year raised $200 million as part of a Series-E round led by WestBridge Capital with participation from Nexus Venture Partners, Invus, Think Investments, Konark Trust and MMPL Trust. At the time, the round bumped the company's valuation to $1.1 billion, making it a unicorn, a startup with a billion-dollar valuation. Rapido's revenue rose 46.3% year-on year to ₹648 crore in FY24, according to regulatory files accessed by business intelligence platform Tofler. The ride-aggregator also narrowed its losses from ₹675 crore in FY23 to ₹371 crore in FY24.
