Rapido Reports Strong ~2.5x YoY Growth in GOV reaching INR 2,461 Crs through 207 Mn rides in the recent quarter, and Strengthening Leadership in India’s Ride-Hailing Market

Bangalore, 14th November 2024:  Rapido, India’s leading low-cost mobility platform, has announced significant strides in its financial performance for Q2FY25, marking a quarter of accelerated growth and operational optimization. The company reported a remarkable 2.5x increase in GOV, reaching INR 2,461 Crores in Q2FY25, up from INR 977 Crores in Q2FY24. Notably, Rapido reduced its losses to INR 17 Crores from INR 74 Crores in the previous year, showcasing its strong commitment to building a sustainable business model while scaling rapidly.

Recent Quarterly Performance

Rapido’s momentum continued into Q2FY25, with a 2.5x jump in GOV, reaching INR 2,461 Crores compared to INR 977 Crores in Q2FY24. The number of ride orders doubled year-on-year to 207 million, reflecting both a larger user base and higher engagement levels. Alongside these gains, the company strategically optimized its fixed costs, achieving a 50% reduction on a per-unit basis without increasing its overall budget. This efficiency allowed Rapido to narrow its quarterly loss to INR 17 Crores in Q2FY25, a significant improvement over the INR 74 Crores loss in the same period last year.

This strong performance is a result of Rapido’s ability to not only increase market share but also build long-term value through its scalable and sustainable business model. The company’s daily ride volume now averages 2.6 million, serving 17 million passengers monthly through ~2 million drivers, further solidifying its position as India’s largest ride-hailing platform by order volume. The company’s expansion of cab services in January has broadened its service portfolio. Additionally, the introduction of a Software-as-a-Service (SaaS) model empowered driver-partners by enhancing their earning potential, resulting in a more satisfied and stable driver base. Rapido’s diversified offerings across bike taxis, autos, and cabs cater to a wide range of commuter needs, reinforcing its commitment to affordable, reliable transportation solutions. By focusing on driving operational efficiencies through growth initiatives at 50% reduction in fixed cost per order and making strategic, purposeful investments in new categories and marketing campaigns, Rapido demonstrates that rapid growth can go hand-in-hand with financial discipline.

Snapshot of Last Two Years’ Performance

Last year’s performance is underscored by a ~2x increase in Gross Order Value (GOV), which soared to INR 4,257 Crores in FY24 from INR 2,419 Crores in FY23, further demonstrating the platform’s expanding market presence. This growth was fueled by a 1.5x rise in ride orders, reaching nearly half a billion rides in FY24, underscoring Rapido’s increasing appeal among India’s vast commuter base. The company’s ability to achieve these results amidst a competitive landscape reflects its deep understanding of market needs and its agile operational approach.

Rapido’s impressive growth trajectory in FY24 was driven by a robust combination of service expansion and strategic marketing investments. Targeted marketing campaigns increased brand visibility and boosted customer acquisition, successfully expanding the user base and driving higher ride volumes. These campaigns, aimed at reaching a broader audience in both urban and semi-urban markets, have significantly contributed to Rapido’s growing foothold in India’s competitive mobility sector. This growth was further supported by key improvements in service quality, including optimized routes, enhanced fleet management, and reduced waiting times and driver cancellations, ensuring a seamless experience for users.

Alongside these growth-oriented efforts, Rapido maintained a disciplined approach to cost management. By identifying and optimizing key cost areas, the company strengthened its operations, achieving a leaner and more resilient structure. This strategic blend of growth initiatives, marketing investments, and cost optimization allowed Rapido to achieve substantial growth while reducing losses, effectively balancing expansion with operational efficiency.

Looking ahead, Rapido’s strategic focus will continue to be on sustainable growth, maintaining its low-cost, high-efficiency approach while expanding its service offerings. The company is poised to invest in further innovations across its three primary categories – bike, auto, and cab services – to cater to a wider spectrum of commuter needs and continue building on its leadership in the Indian ride-hailing market. With the solid foundation established in FY24, Rapido is well-positioned to continue growing responsibly, expanding its user base, and enhancing long-term financial stability in the coming years.