Rapido.... Bike Wali Taxi Sabse Saxi

I am glad to share my experience of a practical case study of a bike taxi or taxi service company. While we often learn about business models and strategies through caselets or videos, diving deep into a company or interning with them can provide a more comprehensive understanding.

As a curious individual, I was eager to learn about the business models and strategies of companies like Ola , Uber , and Rapido . I took the initiative to join Rapido as a captain and am currently working with two more services to understand their models.

Although it may seem unusual for a top B management college student to work as a Rapido captain, I never felt ashamed of doing this work. I believe that one should never underestimate any job, big or small, and should never be ashamed of doing their work.

The verification process for becoming a captain was straightforward, and the service agent guided me through every step. Initially, I felt a little embarrassed when calling customers and asking for their location, but I was also excited because it was my first day. As I completed my first week, I identified various pain points and ease as a captain, along with advantages and disadvantages from the customers' perspective.

Overall, this experience allowed me to gain a deeper understanding of the bike taxi business model and strategies. It reinforced my belief that hands-on experience is invaluable for understanding any business model or strategy. I urge corporate sectors and management students to embrace hands-on experience to truly understand a business model and its strategies. This experience will provide valuable insights and allow for a more comprehensive understanding of a company's operations.

Let's break it down one by one:

Advantages for Captains:

?a) Flexibility in Job Opportunities: Captains have the flexibility to choose their working hours and take rides according to their convenience, without fixed schedules or pressures.

b) Incentives: Captains receive various incentives based on completing a certain number of rides and fulfilling specific terms and conditions. They can also earn extra income, typically around 40%, during night hours.

c) Insurance Coverage: Captains are provided with accidental insurance coverage and other types of insurance as well.

d) On-Route Bookings: Captains have the option to receive booking requests from any point along their regular route, allowing for convenient pickups and drop-offs.

Advantages for Customers:

?a) Affordable Pricing (Bike): Customers can enjoy rides at rates similar to normal auto fares, ensuring reasonable and cost-effective transportation.

b) Mid-Ride Drop Location Change: Customers have the flexibility to change their drop-off location during the ride, accommodating any spontaneous adjustments in their plans.

c) Attractive and Interactive Coupons: Customers can avail themselves of coupons that are engaging and appealing, designed to encourage them to choose Rapido for their rides.

d) Flexible Payment Options: Customers have the freedom to choose or change their payment mode, selecting the option that is most convenient for them.

Disadvantages/Loopholes

For captains:

a) There is a restriction of one week for cancellations, therefore if a customer cancels at the last minute after the captain has arrived at the pickup spot, the captain will not receive any compensation. More than Five times I arrived at the pickup location, which was 1-3 kilometres away, and they cancelled the service.

b) Customers have occasionally requested cancellations, but when the captain requests it from their end, they have refused the request because they would then be responsible for the cancellation fee.

c) I travelled more than 6 kilometers to pick up the client, yet under their long pickup fare policy, the most I could be reimbursed was 6 Rs.

d) Sometimes captains have to take a loss because of traffic or customer wait delays. (When it was time for pickup, I asked the customer what the sum displayed was. He said, "40 Rs." The distance was just about 3 kilometres, but it took longer than an hour to get there due to traffic. I receive no bonus or additional compensation for that.) (They have a rate card, but it frequently malfunctions.)

e) There isn't a set service fee set by the business. Although it is noted in their chart, occasionally captains pay more than 40% of their income, which is why they are looking for alternatives.

f) Never book a seat "On Route" while travelling the busiest route in the city.(Some adjustments are required)

g) In certain instances, consumers or captains behave violently.

Loopholes: Some captains ask customers to cancel rides at the pickup point to avoid service charges. This can result in the captain taking the customer to their destination without paying through the official system (Similarly, Rapido can close 1-2 additional loopholes to lessen their loss.)

For Customer:

a) Without warning, the captain either refused to pick up and cancelled the ride or took a very long time to pick up, forcing the customer to cancel and pay the fee.

b) Due to the remoteness of their locations, captains occasionally charge customers extra fees, leaving the customer with no choice but to pay them.

c) In certain local areas, there is a concern where captains do not carry an additional helmet and instead ask customers to ride with three people on a bike. This practice is not only against the law but also poses a safety risk to the customers.

d) In new or non-metro cities, there is a need for additional marketing and promotional activities to increase awareness and generate interest in Rapido.

Add-On: Rapido can provide additional assistance by offering electric bikes on an EMI/loan basis for individuals who are interested in working as Rapido captains. This initiative can be particularly beneficial for those who rely on Rapido as their primary source of income to support their families.

PGDM Rural Management

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