Rapido Reports Strong Growth in Q2FY25

Key Highlights:

• Rapido's Gross Order Value (GOV) grew 2.5 times, reaching Rs 2,461 crores in the latest quarter, up from Rs 977 crores in Q2FY24.
• Ride orders doubled to 207 million this quarter, increasing user engagement and growth.
• Rapido reduced its quarterly loss to Rs 17 crores, down from Rs 74 crores in Q2FY24, by cutting fixed costs per order by 50%.
• For FY24, Rapido's GOV rose to Rs 4,257 crores, with annual revenue increasing to Rs 648 crores.
• The company introduced a SaaS model for drivers.

Rapido, a popular low-cost mobility platform, has reported a remarkable 2.5 times increase in its Gross Order Value (GOV) in the latest quarter. The GOV reached Rs 2,461 crores, up from Rs 977 crores in Q2FY24. 

This impressive growth was also reflected in the number of ride orders, which doubled to 207 million, compared to 106 million rides in the same quarter last year. The company attributes this increase to a larger user base and higher engagement with its services.

Reduced Losses and Cost Optimization

Despite the increase in order volume, Rapido also made progress in reducing its quarterly losses. The company’s loss narrowed to Rs 17 crores in Q2FY25, a significant improvement from the Rs 74 crore loss reported in the same quarter last year. 

This reduction in losses was attributed to strategic cost optimization efforts, particularly a 50% cut in fixed costs per order. Rapido achieved this without expanding its overall budget, a move that helped improve its financial performance.

Strong Growth in FY24

In FY24, Rapido's performance showed consistent growth across key metrics. The GOV for the year surged to Rs 4,257 crores, up from Rs 2,419 crores in FY23. Ride orders grew by 1.5 times, reaching 44.5 crore rides in FY24, compared to 30.7 crore in FY23. 

The company’s revenue for FY24 also rose to Rs 648 crores, up from Rs 443 crores the previous year. Rapido successfully reduced its annual loss to Rs 370 crores in FY24, down from Rs 675 crores in FY23.

Expanding Market Reach

With an average daily ride volume of 26 lakh and a monthly customer base of 170 lakh, Rapido has become India’s largest ride-hailing platform by order volume. The company further expanded its offerings in early 2024 by introducing cab services, catering to a broader range of commuter needs. 

Additionally, Rapido's introduction of a Software-as-a-Service (SaaS) model allowed its driver-partners to increase their earnings, leading to greater satisfaction and stability within its driver network.

Rapido’s success is partly due to its focus on operational efficiency. The company optimized its operations to achieve a 50% reduction in fixed costs per order, improving cost-effectiveness. Other strategic improvements, such as route optimization and fleet management, have enhanced the overall user experience, ensuring faster and more reliable service.

Looking ahead, Rapido aims to continue its expansion, focusing on maintaining low-cost operations and high efficiency. The company plans to expand its services in its core categories of bike, auto, and cab offerings to meet the growing demand for affordable and reliable mobility solutions.

Also Read: Rapido Partners with IndoFast Energy to Roll Out 10,000 Swappable E-Autos

CMV360 Says

Rapido’s growth in Q2FY25 shows that its strategies are working well. The increase in orders and revenue, along with reduced losses, highlight the company’s ability to scale efficiently. With its focus on cost optimization and expanding services, Rapido is on track for continued success in the competitive ride-hailing market.