Swiggy-Backed Rapido Extends Zero Commission Model To Auto Drivers

Ride-hailing startup Rapido announced the expansion of its software-as-a-service (SaaS)-based zero commission model to auto drivers. The company stated that it is transitioning from an aggregator-commission-led model to introduce a lifetime zero commission model for its auto drivers, aiming to enhance transparency and inclusivity in its service.

Pavan Guntupalli, Co-Founder of Rapido, commented, “According to data, India witnesses approximately 2 crore auto rides daily, with the online market capturing less than 10 percent of this. Rapido perceives its competition not from parallel players, but from the offline market. With close to 25 lakh auto drivers in India, of which around four lakh offer services through Rapido, our zero-commission initiative aims to onboard a significant number of offline drivers onto our platform.”

Guntupalli acknowledged that revenue margins would be constrained but emphasized that the company’s focus is on long-term revenue from maintaining a substantial market share. He stated, “Currently, Rapido facilitates approximately 17 lakh rides per day across all verticals. We plan to double this figure to 30 lakh by the end of the year.”

The SaaS model operates on a nominal daily access fee instead of a commission per ride, allowing auto drivers to retain their entire earnings, liberating them from commission constraints and maximizing their lifetime earnings, as per the company’s statement.

The one-time daily login fee will vary based on each city’s demand potential, ranging from Rs 9 to Rs 29. Presently, commute service providers typically charge around 15 percent commission per ride from drivers.

Rapido, backed by Swiggy, provides auto, bike-taxi, and cab services across more than 100 cities in India.

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