Rapido to switch to all-electric bike-taxi fleet in Delhi by next year

Delhi is among the cities where Rapido bike taxis will go all electric.

Ride-hailing unicorn Rapido is looking to go all-electric for its bike-taxi service in Delhi over the the next year through partnerships with firms such as Zypp Electric and Gogoro, the firm’s co-founder and chief executive officer (CEO)  Arvind Sanka has told Moneycontrol.

The shift comes at a time when the national capital is makes rapid strides in electric vehicle adoption, supported by the state’s EV policy.

“Some cities we will move to 100 percent electric in the next one year. For example, in Delhi we will be going 100 percent electric in the next one year. Twenty-five 25 percent of our bike-taxi services are already electric there and we will slowly move towards other states as well,” Sanka said.

The shift could also give Rapido a first-mover advantage in the bike-taxi sector, as competitors such as Ola and Uber experiment with green solutions.

The firm is working with original equipment manufacturers (OEMs) and fleet operators including Zypp Electric and  Gogoro. The firm also run its own EV fleet in three-wheeler autos in Bengaluru.

“If there are fleet operators, we buy from them. Help drivers buy the vehicle. If there are no EV operators in a city, we offer the drivers our own EV vehicle,” Sanka said.

Green push

Moneycontrol has been writing about the developments around rRide-hailing firms tying up with EV makers to adopt electric vehicles.

Companies such as Uber are also in discussions with electric two-wheeler manufacturers to transition to EV fleet services or entering into partnerships to offer vehicles at a reduced cost to driver partners.

Ride-sharing firm Ola Cabs on September 16, 2023, announced the relaunch of its bike- taxi service in Bengaluru using only electric scooters.

Ola founder and chairman Bhavish Aggarwal said the firm is open to talks with other local partners for purchasing EVs for the business. At present, the firm procures its EV two-wheelers from Ola Electric.

This comes at a time when several states including Karnataka and Delhi NCR are increasing regulations around bike-taxis.

The Delhi government in November 2023 said it was looking to electrify all bike-taxis by 2030. The state government allowed a phase-wise transition of cab operators' fleets to electric vehicles.

Delhi has come up with EV Policy 2.0, which has been sent to lieutenant governor VK Saxena for final clearance.

Under the scheme, bike-taxi aggregators will be allowed to run their operations in Delhi, provided they are electrical. It also says the fleet of aggregators, delivery service providers and ecommerce entities in the national capital, which has a huge pollution problem, needs to go electric by 2030.

Rapido’s big bet on quick commerce

Rapido is also entering the quick commerce delivery segment for hyperlocal deliveries. It recently signed a partnership with Zepto, Pincode and KPN Farm Fresh, Sanka told Moneycontrol.

After the coronavirus pandemic, quick commerce has become a significant growth driver for the Indian market, with most fast-moving consumer goods (FMCG) companies identifying it as their fastest-growing sales channel. It now constitutes about 40 percent of online grocery sales in the country.

Rapido’s journey

The Hyderabad-based firm was founded in 2015 by Sanka, Pavan Guntupalli and Rishikesh SR. Rapido, which started off as an auto and bike taxi aggregator, has also ventured into cabs and claims to have generated over 70 lakh jobs in nine years.

The firm recently raised $200 million in a round led by existing investor WestBridge Capital, which valued the startup at $1.1 billion.

In July, Moneycontrol reported that Rapido has joined the unicorn club after raising around $120 million (Rs 1,000 crore) in its Series E funding round led by its existing investor WestBridge Capital.

A unicorn is a privately owned business valued at $1 billion or more.

Rapido’s revenue from operations surged 3X to Rs 443 crore in FY23. Its net loss was at Rs 649 crore in the same period.

Sanka said the firm will turn PAT (profit after tax) positive over the next few months.

“All the categories are profitable, in terms of segment Ebitda. We are just a few months away from PAT positive,” Sanka said.