Rapido launches subscription fee model for auto taxi drivers

In a bid to attract more offline auto drivers, Bengaluru-based ride-hailing company Rapido today has launched a subscription fee model for three-wheeler taxi service drivers on its platform. This replaces its existing model of levying commission on each ride.

“We are changing the business model into a SaaS model where we are giving our product as a service and asking the driver to just pay an access fee of as low as Rs 9 to use the product. And they can use it as much as they want. So now whether a driver does 5 or 10 rides, whether they earn Rs 100 or Rs 1,000, they just need to pay a simple access fee,” said Rapido co-founder Pavan Guntunpalli.

Rapido has been piloting this subscription fee model for autos in some select markets. The new model will be rolled out to three-wheeler drivers across the country from now. Rapido will charge a subscription, or logging, fee in the range of Rs 9 to Rs 29, depending on the city.

With offline rides accounting for around 90% of auto rides in the country, Guntunpalli sees a huge potential for growth in three-wheeler taxi service in the country. Currently, Rapido has a market share of around 25% in the three-wheeler ride-hailing space.

Rapido has been popular for its budget-friendly two-wheeler services. For two-wheeler drivers, the company charges a commission on each ride, “Since there are a lot of part-time drivers in the two-wheeler service who do two or three rides a day, our understanding is that having a subscription or access fee might be detrimental,” Guntunpalli told Autocar Professional.

In December, Rapido also launched its cab service in major cities across the country through the subscription fee model, where drivers will have to pay a subscription fee on certain earnings milestones. Rapido’s can service is now available in around 35 major cities.

Guntunpalli believes its software as a service model can help the company onboard a significant number of drivers onto its platform, citing better earnings.