OVERVIEW
● ABOUT THE BRAND
● VISION
● MISSION
● INTERNAL ASSESSMENT
● EXTERNAL ASSESSMENT
● SWOT ANALYSIS
● STRATEGIC IMPLEMENTATION
● RECOMMENDATION
● CONCLUSION
ABOUT THE BRAND
● Rapido is an Indian bike taxi aggregator and logistics service provider based out of Bangalore.
Founded in 2015, the company operates in over 100 cities across the country
● The company was founded in 2015 as the Karrier by two IIT alumni and a PESU alumni – Aravind
Sanka, Pavan Guntupalli, and S R Rishikesh.
● It aims at provides convenient, affordable, and efficient transportation solutions to its customers.
● Rapido's vision revolves around
transforming the way people commute by
VISION offering a reliable and time-efficient
mode of transportation. They aim to
become a leading player in the ride-
hailing industry, focusing on two-wheeler
transportation solutions
● We're on a mission to
MISSION revolutionize the way
people commute.
INTERNAL ASSESSMENT
Value Chain Analysis
● A value chain is a series of consecutive steps that go into the creation of a finished product, from its
initial design to its arrival at a customer's door. The chain identifies each step in the process at which
value is added, including the sourcing, manufacturing, and marketing stages of its production.
● The purpose of a value-chain analysis is to increase production efficiency so that a company can deliver
maximum value for the least possible cost.
● In his concept of a value chain, Porter splits a business's activities into two categories, "primary" and
"support”.
PRIMARY ACTIVITIES
1. INBOUND LOGISTICS:
• Rapido collaborates with various suppliers and partners to ensure a steady supply of motorcycles and
spare parts.
• It manages the procurement and transportation of motorcycles to its operational centers.
• It maintains an inventory of spare parts and conducts quality checks to ensure the availability of
reliable vehicles.
2. OPERATIONS:
• Rapido's operations involve the coordination of riders, customers, and the technology platform.
• The mobile application serves as a platform for customers to request rides, while the backend system
efficiently assigns nearby riders.
• Rapido ensures the smooth functioning of the ride-hailing service, including real-time tracking, safety
features, and efficient route optimization.
• It manages the maintenance and servicing of motorcycles to maintain their operational readiness.
3. OUTBOUND LOGISTICS:
• Rapido facilitates the movement of riders and customers by optimizing the routing and dispatching of
its fleet.
• It offers multiple payment options, including cash, digital wallets, and in-app payments.
• Rapido provides receipts and invoices to customers for their ride transactions.
4. MARKETING AND SALES:
• Rapido utilizes various marketing channels, such as social media, online advertisements, and
partnerships, to create brand awareness and attract new customers.
• It offers promotional campaigns, referral programs, and discounts to incentivize customer acquisition
and retention.
• Rapido maintains customer support services to address queries, complaints, and feedback promptly.
SUPPORT ACTIVITIES
1. TECHNOLOGY AND INFRASTRUCTURE:
• Rapido heavily relies on its mobile application and backend systems for managing its operations,
connecting riders and customers, and optimizing the ride-hailing process.
• It invests in robust server infrastructure, data analytics, and artificial intelligence algorithms to enhance
the efficiency and reliability of its platform.
• Rapido maintains a user-friendly interface, secure payment gateways, and data privacy measures to
ensure a seamless and trustworthy experience for users.
2. FIRM INFRASTRUCTURE:
• Rapido has a strong organizational structure with dedicated teams managing different aspects of the
business, including operations, technology, marketing, and customer support.
• It establishes partnerships with insurance providers, financial institutions, and regulatory bodies to
comply with legal requirements and ensure the safety and security of riders and passengers.
• Rapido continuously invests in research and development to innovate its services, improve the
platform, and adapt to changing market trends.
INTERNAL FACTOR EVALUATION MATRIX
FACTORS Weight Rating Weighted Score
STRENGTHS
Strong brand recognition and market 0.15 4 0.60
presence
Innovative technology platform 0.12 3 0.36
Extensive network of drivers 0.10 3 0.30
User-friendly interface and intuitive design 0.11 2 0.22
Efficient operations 0.08 4 0.32
WEAKNESSES
Reliance on contract workers 0.15 3 0.45
High competition in the industry 0.12 2 0.24
Limited international presence 0.08 3 0.24
Inadequate driver training programs 0.9 1 0.9
Total 1.00 2.82
EXTERNAL ASSESSMENT
EXTERNAL FACTOR EVALUATION MATRIX
FACTORS Weight Rating Weighted Score
Increasing demand for ride-hailing 0.08 4 0.32
Growing popularity of bike-sharing 0.06 3 0.18
Regulatory challenges 0.1 2 0.2
Intense competition in the market 0.12 3 0.36
Technological advancements 0.1 5 0.5
Changing consumer preferences 0.08 4 0.32
Increasing fuel prices 0.07 2 0.14
Rising concerns over safety 0.09 3 0.27
Shifting government regulations 0.1 4 0.4
Impact of COVID-19 pandemic 0.3 2 0.6
Total 1.00 3.29
PORTER 5 FORCES MODEL
● Porter's Five Forces is a model that identifies and analyzes five competitive forces that shape every
industry and helps determine an industry's weaknesses and strengths. Five Forces analysis is
frequently used to identify an industry's structure to determine corporate strategy.
● Porter's model can be applied to any segment of the economy to understand the level of competition
within the industry and enhance a company's long-term profitability. The Five Forces model is named
after Harvard Business School professor Michael E. Porter.
● Porter's 5 forces are:
1. Competition in the industry
2. Potential of new entrants into the industry
3. Power of suppliers
4. Power of customers
5. Threat of substitute products
6. Threat on complementary products
1. Bargaining Power of Buyer: (High)
The strength of customers can affect the performance of a firm by lowering the prices placed on the products
and services.
Switching Cost and Substitutes:
Customer are sensitive to price variations due to the existence of alternatives and rivals. As the market grows
bigger, the number of opponents bringing customers more choice also becomes larger thus makes the
switching cost for customers comparatively low. Customers can therefore freely choose between Uber, Ola,
Rapido or other emerging ride-sharing entities at no cost..
2. . Bargaining Power of Supplier: (High)
This is the ability of suppliers to drive up the prices of a company inputs. The threat of supplies to Rapido is
experienced below:
Availability of Drivers:
Since tech based ride sharing services like Uber, Ola, Rapido does not own any of the vehicles operating in its
name, it is dependent on its supplier ie, drivers for their cars. They outsources their cars, bikes and the driver's
services which give the suppliers an upper hand. Thus the suppliers have a high bargaining power. Moreover,
companies has also had to take care of the suppliers that it is outsourcing because if anything had happens, it
directly affects company name and brand image.
3. Threat of New Entrants: (Moderate)
A company position can be immensely affected by the ability of other organizations to enter their market. The
potential risks that the enterprise face are as follows:
● Economics of Scale:
Economies of scale would be a significant factor in any industry. The reason for the growth in the industry is
the economies which are available to existing player
● Customer Switching Cost:
Switching costs arise when it costs a customer time, energy and money to switch from the products offered by
one established company to the products offered by a new entrant, Customer switching cost for ride sharing
service industry is very low because customers are not incurring any significant cost to switch
● Government Regulation:
Like most large industries, the ride sharing faces regulations mainly aimed at consumer protections. Aside
from having their vehicles licensed and insured, states vary considerably in their legislation.
4. Threat of Substitutes: (High)
● In the ride sharing industry, there are numerous member organizations that can quickly provide a
replacement for each other. With the service quality that Uber, Ola, Rapido provides, taxi services, for
instance, is the closest opponent and a potential substitute emerging from the traditional transportation
industry. Taxi service is traditional to towns with ride-sharing operations because of both its lower-cost and
efficiency, and user- friendly designing.
● As such, their abundance is enough to curb each other's service fees, It is noteworthy that due to price
sensitivity, a minor rise of Rapido rates can result in customer taking on the services of its closest
adversaries and alternatives. Moreover, due to the presence of other public means of transport like trains,
private cars that offer similar services can threaten operations.
5. Industry Rivalry: (High)
● Industry Competitive Structure
Ride sharing industry is consolidated industry because of small number of large companies. The competition
among the players in this market will be high and rising. The major competitors in this industry are Uber, Ola,
Rapido.
● Diversity of Competitors
Presently in Ride sharing industry, there is diverse kind of competitors like in 4 wheelers Ola, Uber, In 2
wheelers Uber Moto, Rapido. Customer has flexibility to use different kind of services at a point of time
● Industry Demand
The demand in this industry is growing significantly. Because of excessive traffic congestion in India, many
different technologies based ride sharing service like Ola, Uber, Rapido got unbelieving response from the
market.
6. Sixth Force: Complementors
● As many ride sharing service providers is dependent on technology and condition on the roads in India.
These two factors act as a Complementors for this industry. If smart phone adoption is high then more
people get access to use the ride sharing services.
● Congested roads, Traffic in major city centres are a safety and efficiency concern for potential cab or
bike drivers. If condition of roads is improved then amount of time spent in travel can be reduced for
customers as well as for drivers
COMPETITIVE MATRIX
FACTORS RAPIDO UBER OLA
Critical success Weighted Weighted Weighted
factor Weight Rating score Weight Rating score Weight Rating score
Brand Image 0.15 3 0.45 0.15 4 0.6 0.15 4 0.6
Market Share 0.1 4 0.4 0.1 5 0.5 0.1 4 0.4
Pricing Strategy 0.1 4 0.4 0.1 3 0.3 0.1 4 0.4
Service Quality 0.15 3 0.45 0.15 4 0.6 0.15 3 0.45
Technology and 0.15 4 0.6 0.15 5 0.5 0.15 4 0.6
Innovation
Driver Network 0.1 3 0.3 0.1 4 0.4 0.1 4 0.4
User Experience 0.1 4 0.4 0.1 4 0.4 0.1 3 0.3
Financial 0.15 3 0.45 0.15 4 0.6 0.15 4 0.6
Performance
Total 1.00 3.95 4.55 4.15
SWOT Analysis
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LOW FARES
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EASILY ACCESSIBLE SAFETY ISSUES
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ORIENTED WITH LOW-TIER CITIES DEPENDENCE ON CONNECTIONS
IDEAL FOR SHORT TERM TRAVEL CONSTANT COMPETITION
CASHLESS TRAVEL
GOVERNMENT REGULATIONS
LAST MILE CONNECTIVITY
OUTER ENVIRONMENT
INCREASE IN SEVICES
FRAUDS AND SCANDALS
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STRENGTHS
● Low-fares: Drivers from all the regions collaborate to meet the demand from the consumers and
therefore, there is always Cash Surplus. This helps to manage the supply efficiently and at the same
time adds to the bottom line.
● Easily accessible: As it is mainly based on technology, it is easily accessible to anyone having a
smartphone with internet access.
● Potential oriented with low tiered cities: It is basically based out of the last mile access, as the first
movers advantage was taken out on the big tiered cities.
● Ideal for Short term distance: As it is highly low priced, it is easy for the users to grab the lowest
prices, making it easy to get a hold on a lot of customers.
● Cashless travel: The app makes the payment method easy for all, helping everyone be it cashless, or
based out of cash.
WEAKNESSESS
• Safety Issues: Drivers play an important role in making the brand name of Rapido and hence any
misbehavior of the driver with the customers directly reduces the brand image in the market.
• Constant competition: Lately, there has been an increase in competition inside the market due to the
presence of Uber and other local taxi service providers.
• Dependence on connectivity: Customers are only able to book rides if they are connected to the
internet. As in India, connectivity is an issue and hence customers are not able to book rides. Though
they have started with offline booking it is not yet very helpful and appropriate.
OPPORTUNITIES
● Last mile connectivity: In Tier 2 and 3 cities, there has been a lack of proper government transport
service and hence this can knock the door of opportunities for Rapido to look into those cities and
capitalize on the opportunity.
● Increase in Services: Rapido shall attract non-tech-savvy customers, it has to rethink its business
model where such segments can also make use of their services and it shall help Rapido in a big
breakthrough as it helps to enhance the customer base to a great on a roader prospect with good
margins of profit.
THREATS
● Government Regulations: Government regulations about the taxi service industry have several
uncertainties at the hand. Taxi service providers are changing being threatened by the changing norms
and regulations.
● Outer Environment: Since, it is based on bike tours, so the possibility of pollution and dust is
inevitable, as they are present everywhere and some people just don’t like the idea of it.
● Frauds and Scandals: There have been incidents wherein the drivers have started to ask riders to book
fake rides just to increase their ride counts for the day. This tends to result in a loss of revenue as the
drivers are grossly paid for nothing
STRATEGY IMPLEMENTATION
1. Define your strategic objectives: Clearly outline the goals and objectives you want to achieve with your
strategy. For Rapido, these objectives could include expanding market share, increasing customer
base, improving operational efficiency, or entering new geographic markets.
2. Conduct a SWOT analysis: Evaluate Rapido's strengths, weaknesses, opportunities, and threats.
Identify areas where Rapido has a competitive advantage and areas that need improvement. This
analysis will help you understand the internal and external factors influencing the business.
3. Develop an action plan: Based on the objectives and SWOT analysis, create a detailed action plan that
outlines the specific steps and initiatives required to achieve the strategic goals. Consider areas such
as marketing and promotion, service expansion, customer acquisition and retention, technology
enhancement, and operational improvements.
4. Focus on customer experience: Rapido's success depends on providing a superior customer
experience. Implement strategies to ensure customer satisfaction, such as improving ride quality,
reducing wait times, enhancing safety measures, and offering attractive pricing options.
5. Expand market reach: Identify target markets where Rapido can expand its operations. This could
include entering new cities or regions, targeting specific demographics, or exploring partnerships with local
businesses or institutions. Develop a market entry strategy and allocate resources accordingly.
6. Enhance technology infrastructure: Leverage technology to improve efficiency and customer
convenience. Invest in a robust mobile application for users and drivers, optimize the app's features, and
introduce new functionalities like real-time tracking, cashless payments, and personalized
recommendations.
7. Build strong partnerships: Collaborate with local businesses, hotels, restaurants, or event organizers to
offer integrated services or promotional offers. Explore partnerships with corporate clients for employee
transportation solutions. Strengthening partnerships can help increase visibility, customer acquisition, and
revenue streams.
RECOMMENDATIONS
CONCLUSUION
THANKYOU
