Rapido has announced that it is extending its Software-as-a-Service (SaaS)-based zero-commission model to auto drivers. In the new model, auto drivers will be able to receive zero-commission payments from the customer in exchange for a dynamic fee to the platform. Under this model, Rapido plays no role in deciding the price point, making the service transparent and inclusive for all stakeholders, the company said in a release.
Pavan Guntupalli, co-founder of Rapido, told businessline, “Captains won’t be charged a commission on their rides, and instead they will have to pay a daily login fee ranging from ₹5 to ₹29 to the platform. They can do as many rides as they want via the app and retain 100 per cent of their earnings. The range of the daily log-in fees will be specific to each city.”
In December 2023, Rapido launched its cab service, Rapido Cabs, with the zero-commission model through the SaaS platform.
This model will initially hamper Rapido’s profitability, Guntupalli said. “But the goal is to have an impact-first approach that will help establish a sustainable business model wherein the increase in fleet size and the number of rides will eventually result in increased revenue and long-term viability.”
As of April 15, 2022, Rapido has raised $310.4 million in funding over 10 rounds. In April 2022, the company raised $180 million in a Series D funding round led by Swiggy. The round also included participation from TVS Motor Company, Westbridge, Shell Ventures, and Nexus Ventures. The total funding of the company is approximately $324 million. Rapido has 56 institutional investors, and WestBridge Capital is the largest institutional investor in Rapido, as per data shared by the company.