Understanding the Product

About the Product

Rapido is an Indian first and largest bike taxi service that offers an alternative to traditional taxis and public transportation. It has a whopping 25 Million+ app downloads. Founded in 2015, the company aims to provide quick, convenient, and affordable last-mile connectivity. Rapido operates in 100+ cities in India through a mobile app that allows users to book bike rides for solo trips, thereby circumventing the traffic more efficiently than cars. The service is particularly popular among young urban commuters.

Rapido has raised multiple rounds of funding and has expanded its services to numerous cities across India. Apart from regular bike taxis and auto, the company has also ventured into logistics and delivery services. The company has positioned itself as a significant player in India's burgeoning mobility-as-a-service market.

What makes Rapido Different?

Rapido's bike taxis can dodge the traffic during peak hours and get you to the destination in a jiffy! It also provide economically priced rides.

Elevator Pitch

"Stuck in traffic? Choose Rapido, India's top bike taxi app, for a quick and cost-effective way to navigate the city. Book in seconds, and we'll get you where you need to go, hassle-free. No more waiting, no more delays. With Rapido, your destination is just a tap away."

Product Selection Framework

PMF Achieved?

Yes

Understanding the Customer

Understanding ICP's

User Interviews:

Locking ICPs

ICPs Prioritization Framework

Final ICP Selection

Prioritization based on following criteria

1. Adoption Curve: Should be Low
2. Frequency of use case: Should be High to Moderate
3. Appetite to Pay: Should be High
4. Total Addressable Market: Should be High
5. Distribution Potential: Should be High

Based on the framework, the top 2 ICPs to be prioritized are:

ICP 1 (Young Urban Professional):

Why?

This group has a high frequency of use due to daily commutes and outings. They have a high willingness to pay, valuing convenience and time-saving. The total addressable market is large with many professionals in urban areas. Furthermore, their distribution potential is high, with easy access through workplaces and online platforms.

ICP 2 (Budget-Conscious Student):

Why?

They have a high frequency of use for various activities like college, tuitions, and social outings. While their willingness to pay is moderate to low, the sheer volume (large total addressable market) compensates for it. Students, being in a communal environment, also offer a high distribution potential through campuses and student-related events.

These two ICPs not only have a high potential in terms of market size but also in terms of usage frequency and distribution possibilities. Targeting them first can help Rapido tap into a large user base that uses the service frequently, ensuring steady revenue and potential growth.

Understanding the Market

Total Addressable Market Calculation

Our TAM would consist of population that belongs to either of the 2 selected ICPs

ICP 1 (Young Urban Professional)

ICP 2 (Budget-Conscious Student)

Approach:

To calculate TAM, SAM and SOM I am following a Top Down Approach

TAM Calculation

SAM Calculation

To provide service users must have smart phone and should should also have intent to pay.

SOM Calculation

Given the strong competition in market with brands such as Uber, Ola Rapido will not be able to obtain 100% of the serviceable market. However since none of the competitor offers Bike Taxi, Rapido can obtain huge segment of the customers looking for affordable and quick ride. With great execution 50% of the market is obtainable

Sources:

https://www.statista.com/statistics/1370009/india-population-distribution-by-gender-and-age-group/#:~:text=With%20over%20600%20million%20people,millennials%20and%20Gen%20Zs%20globally.

https://timesofindia.indiatimes.com/business/india-business/people-earning-less-than-2-5-lakh-constitute-57-of-taxpayers-govt-data/articleshow/77519141.cms

Acquisition Strategies

Channel Selection Framework

Market Analysis

The top 3 channels as per market analysis are:

• Direct
• Referral
• Organic Search

Insights from ICP

Two two channel as per user interviews are:

• Social Media Ad
• Referral

The Chosen Ones

Social Media Marketing:

Social Media Marketing cost is medium since it depends on the Social Media Platform, has high flexibility and has high Spread.

It will bring Immediate visibility and potential for high scalability. This channel allows for quick testing, rapid iteration, and instant results. It's an excellent way to promote offers, gain new users rapidly, or target specific geographies.

Referral:

Referral channel cost is medium, has medium flexibility and medium effort and provide medium spread and speed.

Also, Leveraging the existing user base to attract new users is a highly effective method, especially for services like Rapido where trust plays a big role. With a referral program, current users can invite friends, and both parties might get benefits, such as discounts. Referrals can have a viral effect, potentially providing both scale and speed in customer acquisition, especially if the incentives are compelling.

Product Integration:

Product Integration cost for Rapido is high, flexibility is Low, requires high effort however it has high Spread and Speed.

It can help Rapido weave directly into content, services, or platforms where the audience engagement is high. For Rapido, this can be an effective way to increase brand visibility and customer acquisition.

Top Channel Prioritized

Social Media Marketing

Prioritization:

Chosen for its immediate reach and the ability to target specific demographics, Social Media Marketing provides quick testing and iteration, essential for fast customer acquisition and brand visibility. Given Rapido's need for rapid market penetration and engaging with a younger, tech-savvy audience, this channel's immediacy and scalability make it a priority.

Channel Selection for Social Media Marketing:

Selected Channels:

Instagram:

It has a large user base that includes Rapido's ICP1, which tends to be younger and more engaged with visual content, making it ideal for visual ads and storytelling which is important for a service like ride-sharing.

Instagram's features such as Stories, Reels, and IGTV allow for a variety of creative marketing campaigns.

Competitors are active and achieving results, indicating the platform's effectiveness for the industry.

Facebook:

Despite its broader and more varied demographics, it still holds a significant user base of both ICP1 and ICP2.

Facebook’s ad platform provides sophisticated targeting options, allowing Rapido to reach specific user segments effectively.

The platform is well-proven for competitors, suggesting a potentially high ROI for Rapido as well.

These selections are based on the match with brand personality, presence of both ICP1 and ICP2, proven effectiveness for competitors, and the platforms' own user engagement capabilities that align with Rapido's marketing objectives.

CAC:LTV Ratio Consideration:

Social Media's potential for high engagement rates could translate to a lower Customer Acquisition Cost (CAC) while possibly increasing the Lifetime Value (LTV) of the acquired customers through continuous engagement.

Ad Objective:

To build brand awareness, drive app downloads, and acquire new users through targeted ad campaigns that highlight the convenience, speed, and safety of using Rapido for urban transportation.

ICP Alignment:

The ads on social media will be tailored for ICP1, young professionals within the age group of 21-35, living in Tier 1 and Tier 2 cities, who are likely to engage with ads on these platforms and are in need of quick and reliable urban transport solutions.

Ad Design for ICP1 & 2:

For Rapido's ICP1, who are young professionals or college students looking for quick, affordable transportation, an ad should focus on convenience, speed, and cost-effectiveness. Visuals should be vibrant and energetic, resonating with the youthful audience. Here’s a conceptual outline for an Instagram ad:

Visual:

A dynamic image showing a young person wearing a helmet, ready to ride, with a Rapido bike in the background, positioned in an urban setting.

Headline:

"Get There Faster – Your Ride, On-Demand!"

or

"Skip the Wait, Ride Rapido!"

Sub-Headline:

"No More Waiting! Zip Through Traffic with Rapido’s Bike Taxis."

or

"Your Daily Commute, Halved!"

Body Copy:

"Why wait for the bus or haggle for fares? Download Rapido, find a ride within minutes, and enjoy affordable fares. First ride at 50% off – let’s get you where you need to be!"

Call to Action:

"Ride Now" button, prominent and enticing, prompting immediate app downloads or bookings.

Hashtags:

Hashtags like #RapidoRide #CommuteSmart #CityTravel #BeatTheTraffic

Budget and Deployment Plan:

Ad Production Cost:

This involves graphic design or animation. Depending on the complexity of the design, the cost can range from INR 10,000 to INR 50,000.

Daily Ad Spend:

A conservative budget could be INR 2,000 to INR 5,000 daily, depending on the desired reach and engagement.

Campaign Duration:

For a short-term boost, a duration of 2 weeks could be enough.

For ongoing visibility, consider a full month or longer.

CPM (Cost per 1,000 Impressions):

The CPM could be on the lower end of INR 100 to INR 200 for banner or animated ads targeting the Indian audience on Instagram.

Expected Reach and Frequency:

With a CPM of INR 150 and a daily budget of INR 3,000, you'd get 20,000 impressions per day.

Over 30 days, this would total 600,000 impressions.

Total Estimated Budget:

Production Cost: ~INR 30,000

Ad Spend for 1 Month: INR 3,000/day * 30 days = INR 90,000

Total: ~INR 1,20,000

Referral

Brag Worthy Proposition

As per User Interviews:

• Quick ride availability
• Affordable Pricing
• Bike Taxi Service helps travel fast in busy hours

Platform Currency

"Rapido Coins" is used as currency in the App. It is currently available in the platform and can be earned by referring a friend, wallet recharge, by earning scratch card and by using cashback discount coupon.

Happy flow of Existing Referral Program for ICP 1:

New Referral Program Design:

Create a new Exclusive Offers Section: "Unlock Rewards with Rapido Coins"

Detail: Earn Rapido Coins through rides and referrals to redeem exclusive deals. More rides and more referrals mean more coins and bigger rewards.

How to Earn Rapido Coins:

Ride Rewards: Complete 1 ride to earn X coin.

Consistency Bonus: Complete 5 rides over 5 consecutive days for bonus coins.

Location Bonuses: Earn extra coins for rides to designated hotspots. For instance, visiting "Food Music Love" in Pune on a Friday earns you 5 instant coins.

Referral Rewards: Invite friends to Rapido. Earn coins when your friends sign up and additional coins for each ride they take.

Redeem Offers with Rapido Coins or Referrals:

Examples:

Cricket Match Exclusive:

Unlock With Coins: Redeem with X Rapido Coins.

Unlock With Referrals: Invite 35 friends. Each must complete 2 rides.

Gourmet Delight Discount:

Unlock With Coins: Redeem with Y Rapido Coins.

Unlock With Referrals: Bring in 5 friends. They should complete 3 rides each.

Feast Together Offer:

Unlock With Coins: Redeem with Z Rapido Coins.

Unlock With Referrals: Refer a friend. Both must take 15 rides in a month.

Coin Usage:

Rapido Coins can be used in full or as a part payment method to unlock these deals.

Each offer specifies the number of coins required to redeem it without referrals.

Keep track of your Rapido Coin balance and offer progress directly in the app.

Note:

The offers are subject to terms and conditions. Rides by referred friends must be completed within a specific time to count towards offers. Rapido Coins have a validity period; check app for details.

User Journey for Rapido Proposed Referral Program

Step 1: Sign-Up/Login and First Ride:

User downloads the app, signs up/logs in, and books the first ride.

Step 2: Post-Ride Experience:

After completing the first ride, the user is prompted to rate the experience.

Step 3: Rating-Based Referral Introduction:

• If the user gives a 4+ star rating: A pop-up introduces the Referral Program and Rapido Coins immediately after rating.
• If no rating is given: The introduction appears when the user books a second ride.
• If the rating is below 4 stars: The introduction is delayed until a 4+ star rating is given on the second ride, or after the third ride is booked, whichever comes first.

Reference:

Step 4: Referral Program Banner and Tutorial:

Whenever the user clicks on Referral Banner he/she should be redirected to referral program page where an introduced is there and a tutorial walks the user through the process of earning coins and referring friends.

Reference:

Step 5: Engagement with Referral Program:

The user can also access Referral Program page, by clicking on menu section present on top left

Step 6: Navigating to Exclusive Offers:

Within the Referral Program section, the user explores total offer available he can then click on exclusive offer to access a page with different exclusive offers and understands the criteria for unlocking each.

Step 7: Initiating Referrals:

The user is provided with a unique referral code and sharing tools to invite friends.

Step 8: Friend Onboarding:

Referred friends sign up using the provided referral code, and the user receives coins after their friends' first completed rides.

Step 9: Earning and Tracking Coins:

The user continues to earn coins by taking rides, referring more friends, and participating in promotional activities like visiting specific locations.

Step 10: Offer Unlocking Process:

The user can unlock offers either by reaching the required number of referrals or by using the accumulated Rapido Coins.

Step 11: Offer Redemption:

On unlocking an offer, the user receives a code or voucher to redeem the offer with the respective merchant or for future rides.

Step 12: Feedback and Reinforcement:

Post redemption, the user gets a confirmation and is encouraged to share their success on social media.

This referral program will motivates the user to stay active by regularly updating new offers and benefits in the Exclusive Offers section and will also help Rapido increase Acquisition, Retention and No of transactions/user.

The End. Thank you for reading.