Swiggy backed Ride-hailing platform Rapido announced that it is looking to attract auto drivers & bring them under its vertical through a “zero commission model”. Rapido said it is building a swing from aggregator-commission-led model to introducing a lifetime zero commission model to enable its auto drivers to enjoy the zero fee services & make the services translucent & inclusive.

On this company's significant move, Rapido Co-Founder Pavan Guntupalli says, “As per data, there are about 2 crore auto rides daily in India, of which the online market cover less than 10 per cent. Rapido sees its competition not in parallel players, but in the offline market. There are close to 25 lakh auto drivers in India, of which about four lakh offer services through Rapido. Through the zero-commission initiative, we aim to onboard a substantial number of offline drivers on Rapido”.

Also Guntupalli added, “The revenue margins will be constrained, however, we are not looking at per-ride commissions but revenue from an aggregate market hold in the long-term”.

To make it brief, the company said, “Currently, Rapido is doing about 17 lakh rides per day across all verticals. We plan to double the figure to 30 lakh by the end of the year,” he added. The SaaS (Software as a Service) model operates on a nominal daily access fee, rather than a commission per ride. This enables auto drivers to keep the entire earning to themselves, break free from commission constraints and maximise their lifetime earnings, the company said in a statement & the one-time daily login fee will vary based on the demand potential for each city, ranging from 9 to 29”.

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