After cabs, Rapido extends SaaS-based zero-commission model to auto drivers

Rapido, on Tuesday, announced that it is extending its Software-as-a-Service (SaaS)-based zero-commission model to auto drivers. Unlike the commission-led model, under 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 its announcement. 

Earlier in December, Rapido had ventured into the cab industry with the launch of Rapido Cabs. Before that, it used to be a bike and auto aggregator. The cab service started in Delhi-NCR, Hyderabad and Bengaluru with around 120,000 cabs with a plan to expand it to 35 cities by September 2024.

The Rapido Cabs had a zero-commission model through a SaaS platform. Drivers on the Rapido platform need to pay a subscription fee of Rs 500 if their monthly earnings exceed Rs 10,000. For auto rides, the daily fees will be in the range of Rs 5 and Rs 29. 

Now, it has been extended to auto services as well. "Cab captains have been using the SaaS model-based discovery platform, which will now be accessible to the Auto captains as well," the company said. However, it did not mention if the fees for auto drivers will be the same as for cab drivers. 

This model is different from most of Rapido's competitors, like Ola and Uber, where the drivers pay a commission per ride. 

"It is a groundbreaking approach which guarantees that captains bear only a nominal access fee, rather than a commission per ride. This marks a noteworthy change in the industry, bringing in a more enabling revenue model for our captains," said Pavan Guntupalli, co-founder at Rapido. 

Guntupalli had earlier said that Rapido would invest in adding electric vehicles to its fleet. Moreover, it plans to

The company's losses, however, continue to widen. According to Entrackr, in 2022-23 Rapido's losses widened by 53.76 per cent, reaching Rs 675 crore in FY23 compared to Rs 439 crore in FY22.

The company's revenue from operations tripled during FY23, reaching Rs 443 crore from Rs 145 crore in FY22.