Transport service providing start-up, Rapido has just received a massive injection of funds worth $180 million USD in a round that was headed by food delivery application, Swiggy.
After this funding, the company is now worth at $830 million USD.
Rapido is not just any other app that provides cabbing services like Uber and Ola. Rapido recognized the fact that traffic, bad road conditions, constant diversions and the fact that many local drivers would know short routes and took quick advantage of it. They were the first app in the industry in India to provide biking services instead of the traditional cars. Rapido provides only bike and auto cabbing services. This is a great and effective competition to Ola and Uber as they provide the same service but for a cheaper price as biking and auto journeys are always cheaper than journeys taken by cars.
Many people prefer taking bikes over cars for their daily commute to work or other regular places as you can wade through traffic and reach your destination much faster than a car for a lower price. Rapido identified just this and created the app and it has caught on quite well especially among the youth who need to save more.
In the company’s entire life time, the firm has successfully raised $310 million USD. This funding round was headed by Swiggy, food delivery start-up. Some other participants included TVS Motors, Chennai based Indian motorcycle manufacturers and Shell Enterprises, a British company that produces and sells premium oil and gas.
This is a great way for Swiggy to diversify their revenue as Zomato currently seems to running away taking the apex spot at the food delivery industry as they gear up to roll out their 10-minute delivery feature.
Rapido said that their collaboration will only bring the two companies together and bring up more opportunities to help each other grow in the future. Both companies share the same value to provide high end customer service that is quick and reactive and this latest funding will just help in that.
When asked as to what the plans will be with the new money, a top official said that the company is looking to upgrade their technology, improve all teams from all departments and increase their capabilities and volumes in their top cities to strengthen their grip and take more chunks of the Indian cabbing sector for themselves.
