Rapido Introduces New Subscription Model for Three-Wheeler Taxi Drivers

The subscription fee will vary depending on the city, ranging from Rs 9 to Rs 29.

Bengaluru-based ride-hailing company Rapido has introduced a new way for auto drivers(three-wheelers) to join its platform. Instead of taking a commission from each ride, they will now pay a subscription fee. This means drivers can use Rapido's service without worrying about how much they earn from each ride. The fee can be as low as Rs 9, and drivers can use the service as much as they want.

Rapido's co-founder, Pavan Guntunpalli, explained that they are switching to a Software as a Service (SaaS) model, offering their product as a service. They have been testing this subscription model in some places and will now make it available to auto drivers across the country.

The subscription fee will vary depending on the city, ranging from Rs 9 to Rs 29. Since most auto rides in India are offline, Rapido sees this as a big opportunity for growth. Currently, they hold about 25% of the market share in three-wheeler ride-hailing.

The company, known for its commission-based system for two-wheeler drivers, stands out for its commitment to providing flexible earning opportunities. Guntunpalli, a spokesperson for Rapido, emphasized the importance of accommodating part-time drivers who conduct two or three rides daily.

Guntunpalli said, "Since there are a lot of part-time drivers in the two-wheeler service who do two or three rides a day, our understanding is that having a subscription or access fee might be detrimental." Since most auto rides in India are offline, Rapido sees this as a big opportunity for growth.

In a bold move, Rapido expanded its offerings by launching cab services in major cities nationwide. In December, the company introduced a subscription fee model for cab drivers, where they pay a subscription fee based on certain earnings milestones. This innovative approach aims to empower drivers while ensuring their sustainable growth.

Rapido's cab service is rapidly gaining traction and is now available in approximately 35 major cities across the country. The expansion reflects Rapido's commitment to providing affordable and reliable transportation solutions to urban commuters.

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Guntunpalli expressed confidence in Rapido's software as a service (SaaS) model, highlighting its potential to onboard a significant number of drivers onto the platform. He cited improved earnings as a key benefit of this approach, signalling a promising future for both drivers and the company.

As Rapido continues to redefine the landscape of urban transportation, its focus on innovation and driver welfare sets a new standard for the industry. With its budget-friendly models and commitment to empowering drivers, Rapido emerges as a driving force in the evolution of modern transportation services.