Rapido turns profitable, tops app downloads in India

India-based ride-hailing startup Rapido has reported its first-ever profitability, according to its co-founders.

The Bangalore-headquartered firm specializes in motorcycle taxi services and surpassed rivals Uber and Ola in app downloads in 2024, according to Appfigures.

Rapido’s growth is attributed to its unique pricing model, which charges drivers a daily subscription fee starting at 9 rupees (US$0.11) instead of a commission per ride.

The startup’s app was downloaded 33 million times last year, compared to Uber’s 21 million and Ola’s 19 million downloads.

While Uber and Ola still lead in cumulative downloads, Rapido is gaining ground in user acquisition.

Operating in over 250 cities in India, Rapido plans to expand into smaller towns.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Subscription model disruption shows powerful alternative to commission-based ride-hailing

Rapido’s pioneering subscription model, charging drivers as little as 9 rupees ($0.11) daily instead of per-ride commissions, represents a fundamental business model innovation in the ride-hailing industry.

This approach has allowed drivers to keep 100% of their fares, creating a compelling value proposition that helped Rapido achieve 33 million app downloads in 2023 compared to Uber’s 21 million and Ola’s 19 million.

The model’s success has encouraged established players to explore similar zero-commission options for certain drivers, indicating a potential industry-wide shift.

This subscription approach particularly suits markets like India where thin margins and price sensitivity dominate, enabling Rapido to achieve profitability while offering affordable transportation.

The strategy aligns with global ride-hailing market forecasts showing expected growth from $74.9 billion in 2025 to $287.6 billion by 2034, where competition for driver supply and consumer loyalty will intensify.

2️⃣ Regulatory evolution creates critical inflection point for bike taxi services

The Indian government’s July 2025 regulatory guidelines allowing states to license and regulate bike taxis represent a pivotal moment for Rapido and the entire motorcycle taxi segment.