Uber, Ola have a new rival! Rapido rolls out cab-hailing services in Delhi, Hyderabad, Bengaluru

Bike taxi aggregator Rapido on Tuesday announced its strategic entry into the cab business - a space that is currently dominated by two major players - Ola and Uber. "The cab launch represents the latest step in Rapido's mission to revolutionize urban mobility and ensure an affordable intra-city solution for all commuting needs," the ride-hailing firm said.

Rapido, launched in 2015, was until now offering services only in the bike segment. Now, it has entered the cab space. "By diversifying its offerings, Rapido aims to become the go-to platform for a wide range of commuting needs, providing an affordable platform for commuters while benefiting captains," the company said.

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The Bengaluru-headquartered firm said these services are designed to promote entrepreneurship, fostering a sustainable livelihood for drivers. Beyond empowering drivers, it added, the focus extends to customer affordability, offering cabs at the lowest price to make transportation more accessible for all.

"With a commanding 60% market share in bike taxis, Rapido expands its footprint with the pan-India launch of Rapido Cabs, introducing an initial fleet of 1 lakh vehicles," the company said.

Rapido co-founder Pavan Guntupalli said he was excited to introduce Rapido Cabs pan India following the success of bike taxi and auto services across the country. "Our innovative SaaS-based platform revolutionizes the conventional commission system for drivers, tackling the persistent challenge of commission sharing with aggregators. This pioneering approach ensures that drivers incur only a minimal software usage fee, marking a significant shift in the industry."

Rapido said that within its ecosystem, drivers enjoy direct payment from customers, free from any interference by the company. "To sustain this model and continue delivering exceptional service, drivers are required to pay a nominal subscription fee," it said. "As an illustration, upon reaching earnings of Rs 10,000 from the Rapido app, drivers will be subject to a modest subscription fee of Rs 500."