Innovation in Motion: Rapido Empowers Auto Drivers With Change In Commission Model

Innovation in Motion: Rapido Empowers Auto Drivers With Change In Commission Model-feature image
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New Delhi: Rapido, a popular platform for booking a bike or an auto rickshaw ride, has developed a Software-as-a-Service (SaaS) model for its auto driver partners, or popularly known as Auto Captains.

This is an important strategy that marks the transition from the traditional commission-based model to a lifetime zero-commission structure, as per the startup announcement.

Rather than levying a commission for each trip, Rapido stated in a press release that it would no longer be involved in setting the pricing, and auto captains would only be required to pay a nominal fee.

Based on the city’s potential demand, the fee will vary between INR 9 to INR 29 per day. According to Rapido, this is an important move that will help in enhancing transparency and inclusivity within the city.

According to Pavan Guntupalli, co-founder of Rapido, “We are excited to integrate the SaaS model to Rapido Autos. Nationwide, we have enabled Auto Captains to earn over INR 2,700 crore since inception and strive to put maximum earnings to those who provide us with the commute.”

The model aims to empower the auto captains to optimize their earnings and attain a fair share of their daily activities, thereby eliminating the limitations of commissions.

Back in December last year, Rapido introduced Rapido Cabs, thereby providing a zero-commission model for the drivers where they will get paid directly once they reach earnings of INR 10,000.

In the financial year 2023, Rapido witnessed a 3X increase in its revenue, and incurred INR 443 crore.

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