Engagement & Retention project | Rapido
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Engagement & Retention project | Rapido

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Let's Begin!

Understanding Product

About Rapido

Rapido is India’s first and fastest-growing Bike taxi app with a whopping 50 Million+ app downloads.

In addition to bike taxis, it now offers cab rides, auto rickshaw rides and also in-city parcel deliveries.

Key Stats

  • Ride sharing market in India - ~ 58,000 crores
  • Market share of Rapido ~ 1% ( FY 23 revenue)
  • 2M+ rides everyday in India
  • 1+ Billion USD Valuation
  • DAU ~ 2 Million users

Core Value Proposition

  • Offer a variety of economical last mile connectivity options for users in-city commutes in the form of bikes, autos and cabs at price points that are affordable for the masses and much lower than competition.
  • Optimized availability of ride options for users at all times.
  • Offer low volume goods delivery within city limits at affordable prices.
  • Highly advanced and contextualized AI model that can accurately predict the ride availability for bikes, cabs or autos, the travel fare and the estimated time of pick up and drop.
  • Zero commission model leading to highly satisfied captains offering quality rides to customers in terms of punctuality, captain behavior and price affordability.
  • Highly trusted and rated ride sharing service for customers

How do users experience the Core Value Proposition

Rapido allows users to experience the CVP by having a User centric ride/delivery booking process and an advanced AI based ride matching algorithm that handles the supply demand equation at all times seamlessly. Here are the details of how a user experiences the CVP consistently and repeatedly

  1. Ease of onboarding on the app in a few simple steps
  2. Intuitive UI to book a ride/parcel delivery by selecting source and destination
  3. By viewing the high availability of drivers around the pick up point, giving a sense of assurance of ride fulfilment
  4. By Viewing the various ride options offered by the App, with accurate details on estimated travel time and fare for each option.
  5. By experiencing minimal wait times till a ride is accepted.
  6. Having exact estimates on ETA of the ride displayed on the app at all times till the ride begins
  7. By having a per-customer static OTP to verify and begin the ride, to start the ride in a frictionless manner
  8. By allowing users to display higher paying intent during rides to increase probability of ride accepts during peak hours
  9. By viewing status of ongoing ride, and having the ability share with friends and family
  10. By making hassle free payments as per initial estimates.
  11. By promptly sending and receiving parcels within the city
  12. By viewing captain ratings and being matched to high rated captains for a ride
  13. By having offers/discounts during the payment process
  14. By having a subscription pass for frequent riders.

Natural frequency of Rapido ride bookings

  1. For ride booking (cab/auto/bike) - At least one ride a week
  2. For parcel delivery - At least once a month

This natural frequency is indicative and would certainly differ based on the ICP and their level of engagement with the product. It could certainly as frequent as daily to once in 2 days for power users v/s once in a month for casual users.

Sub Products of Rapido and their CVP with the Natural frequency of users

Sub-product

Core value Proposition

Age

Natural Frequency for Casual User

Natural Frequency for Core User

Natural Frequency for power User

Ride Booking

Affordable rides with top rated captains

16-55

1 ride/ 3-4 weeks

1 ride/week

4+ rides a week

Parcel Delivery

Prompt and affordable on-demand delivery services within your city

22-50

On demand

1 parcels/ month

2+ parcel/month

Power Pass

Month long pass with Assured discounts on every bike ride with Rapido

16-24

Never buys power pass

Buys power pass at least once in 3 months

Buys Power pass every month

Customer Segmentation

Secondary research shows that majority of the user base is male (~70%). The user base of Rapido is mostly distributed among the age groups 18-45 as shown below.

Ages 18-24 constitute majority of the user base (~62% of total users). Hence the ICP segmentation and representation also focuses on this age group.

image.png

Source: Link

Segmentation based on natural frequency


Casual

Core

Power

Type of ICP

Occasional Riders

Steady Riders

Rapid Regulars

Gender

Female

Male

Male

Age

18-22

22-30

22-34

City

Tier-1

Tier 1

Tier-1

Occupation

Student at a college

IT Professional

IT Professional

Education Background

Graduate

Graduate

Post Graduate

Source of Money

Parents

Job

Job

Salary

10k per month : Pocket Money

5-20LPA

10-30LPA+

Marital Status

Single

Single/Married

Single/Married

Kids

No

Depends

May have kids if married

Lives With

Friends at Campus

Flatmates in City, Family or Alone

Flatmates/Family

Other Used Apps

Instagram, YouTube, Snapchat, Whatsapp, Meesho, Myntra, Facebook, Ola, Uber

Instagram, YouTube, Facebook, Netflix, primevideo, Hotstar, Quora, Myntra, Nykaa, Amazon, Flipcart & Whatsapp, Ola, Uber

Instagram, YouTube, Netflix, Healthifyme, Nykaa, Hotstar, Amazon & Whatsapp, Ola, Uber

Money Spent

Food and Shopping

Rents, Travelling, Food, Theatre Movies, OTT Platforms, Comedy Shows, Pubs, Restaurants, Shopping & Emergency Savings

Diet, Rents, Groceries, Dance Classes, Sports Clubs, Travel & Investments

Time Spent

Classes, Games, Shopping, Reels & Movies

Work, Theatre Movies, Reels, Series, Travelling, Shopping & OTT

Dances Classes, Yoga, Badminton, Basket Ball, Swimming, Cooking

Money vs Time

Money.

Money.

Time.

Interests

Reels, Movies, Food and Shopping

Shopping, Travel, Series & Theatre Movies

Retreat Classes, Health, Fitness Clubs, Sports Activities, Yoga Sessions

Own a vehicle

No

Yes, 2 wheeler and 4 wheeler

Yes, 2 and 4 wheeler

Prefer riding own vehicle by yourself everyday

Not applicable

2 wheeler Yes, but only for short distances

4 wheeler, Yes, not for office

2 wheeler Yes, only for short distances

4 wheeler - No. Only for outstation trips

Nature of work

Student, very less travelling involved except from home to college and back

Desk Job, but has to travel to office daily. Commute time is considerably high

Desk job, Goes to office 3 times a week. Works from Home.

How do they prefer to travel within city limits?

1. City Bus ( Metro services not available near her college)

2. Father drops her to college

3. Hitch a ride with a friend

4. Book a ride on app

1. Mostly use the Metro, rarely uses the bus

2. Personal transport to travel to Metro station

3. Office Cab/Personal Transport during rains

4. App based rides

1. Mostly app based ride services

2. Sometimes personal transport if there are errands to complete after office

Current Pain points

1. Long wait times for bus

2. Cannot rely on father to drop as he has to rush to office

3. Hitching a ride with friend not always possible

4. Ride availability during peak time not assured, if assured, would be costly

5. Does not prefer to travel alone due to safety issues

1. Walking to office from Metro station takes a long time

2. Wife cannot use the bike as it is parked in the metro station for most of the day

3. Stressful to take personal transport to office as roads are choked

4. Office cab services are not free, quite costly

5. Timely availability of rides via apps

1. Ride booking cancellations/surge pricing

2. Lack of affordable options for weekend intercity travel

3. Spend a lot on cabs, so would prefer discounts on recurring bookings

4. Have to book a cab each day at the same time, no pre-booking option for cabs

How did you gain awareness about Rapido?

Poster Ads on Buses

Social Media Ads

Via a friend

How often do they take a ride via app based service

Occasionally , once in a month

Frequently, at least once in a week

2-3 times in a week

What are the factors you consider while booking a ride?

Price, Driver Photo, Rating, Distance to be covered, Discounts

Price, Type of available ride, Time for travel

Price, Ride Options, Discounts

Which app would be your first preference of choice to book a ride?

Doesn’t matter, which ever gives me lowest fare

Usually Rapido, as it has bike taxi options

Rapido

Do you use Rapido?

Occasionally

Yes, Frequently

Very Frequently

What is your primary reason for using Rapido?

Affordable price- for short distance rides

Bike Taxi options

Assured discounts on pass rides

Quick availability of rides during peak hours

What kind of ride do you usually book on Rapido?

Auto ride

Bike

Cab/Auto

How often do you book a ride on Rapido?

Ocassionally

Frequently, at least once in a week

2-3 times in a week

Avg Ride Value

100-150 Rs (Paid by self)

50-60 Rs (Paid by self)

300-400 Rs (Usually reimbursed by office)

What’s features do you value the most on Rapido?

Safety feature, Pricing, Rapido coins

Bike Taxi, occasionally Autos,

Affordable pricing, quick availability, add tips to drivers, flexi fare

What other features of Rapido have you used?

None

Some times booked a parcel

Bought a pass frequently, booked a parcel delivery several times

What do you dislike about Rapido?

Driver cancellations, Surge pricing, Longer routes taken by captains

Driver cancellations, Availability during peak times

Fare calculations, Lack of discounts

Driver cancellations, Availability during peak times

Fare calculations

Lack of meaningful discounts/offers

No partnership with any cards for special discounts

What would encourage you to use Rapido more frequently?

Assured availability, discounts, fixed fares

Quick ride matching, fixed fare, no extra bargaining

Discounts, scheduling cab rides before hand

Would you refer Rapido to a friend or colleague?

May be

Sure

Sure

What other alternatives do you look for instead of Rapido?

Public Transport

Walk, book a ride on any other app

Self drive, use quick ride, Uber

JTBD of Rapido

Book an occasional ride when no other option available

Use Rapido bike taxis to beat the city traffic to quickly reach the destinations

Use the comfort of a cab to travel to office without having the trouble to drive himself

Which feature do you least value?

Rapido coins, don’t see a value in it.

Coins, it does not add value to my transactions

None

Advanced segmentation based on RFM matrix

Although we have classified the users as Casual, Core, Power based on their natural frequency, it is extremely likely that we will have further classification of users within these 3 categories.

User Segment

Action

Casual → About to Churn

Uninstalled the app a few days back

Casual → Core

A sudden spurt in the user’s ride booking pattern displaying a habit forming pattern. Explored the pass option multiple times but hasn’t booked one yet.

Core → Casual

A sudden drop in the user’s ride booking pattern as compared to their natural frequency.

Core → Power

User starts renewing their passes frequently, adding money to wallet and is beginning to book higher value rides, displaying deeper commitment building behaviors

Since Rapido has more than 50M users, it is necessary to further segment the active user base into more advanced segment, in order to better target the engagement campaigns and have actionable outcomes.

Usage Characteristics

Hibernating

In - Danger

Potential Loyalist

Loyalist

Champions

Recency of use case

60 days

30 days

15 days

10 days

2 days

Natural Frequency

Once a month

Once a month

Once a week

Twice a week

3-4 times a week

Type of user

Casual

Casual

Core

Core

Power

Monetary/AOV/Revenue Generated

​5%

10%

15%

30%

40%

Breadth of Engagement

Very Low

→ Books rides - infrequently

→Unaware of features like schedule ride, rapido coins, rewards, wallet, parcel delivery, subscription pass etc.

Very Low

→Books ride Frequently

→Aware of obvious features like ride options, parcel delivery but not aware of not-so-obvious features like coins, rewards etc.

​Medium

→ Books rides

→ Aware of most of the features, uses some of them occasionally.

Medium

→ Books rides regularly

→ Aware of most of the features, uses most of them.

High

→ Books rides regularly

→ Aware of most of the features, uses most of them frequently

Depth of engagement (average revenue per user)

Very Low

→ Only focuses on ride booking, mostly an low value transactions like auto/bike for short distances

→ Does not display any commitment building behaviors

Low

→ Only focuses on ride booking, mostly an low value transactions like auto/bike for short distances

→ Does not display any commitment building behaviors

Medium

→ Books a combination of rides, but focuses mostly on medium to low value rides. Occasionally takes a cab

→ Shows some degree of commitment building behavior like using wallet, coins.

→ Willing to buy a pass, but needs a nudge

High

→Books a variety of rides, mostly high value transactions.

→ Buys a pass, but does not renew it consistently.

→ Shows commitment building behavior like buying a pass but does not renew it regularly.

→ Also regularly uses the wallet, and coins

Very High

→ Buys Pass

→ Frequent booking of cabs (Premium and Economy), with longer distances

→ Shows consistent commitment building behavior like buying a pass and renewing it

  • Champions are power users who have a high frequency and high recency. Their higher engagement is built over utilising multiple features of Rapido over the time and now are highly engaged with a very high retention rate.
  • Loyalists are Core users, on the far end of the curve to become Power users. Potential Loyalists are Core users. Their engagement is driven through the continuous experience of on-time ride availability, affordable pricing and discounts. They are active on at least one-sub product. They display some degree of commitment building behavior but have some barriers to become long term committed users. The barrier for using new features has to be broken and create a habit of using other features and increase frequency of orders.
  • Hibernating & In-Danger are Casual users. Their engagement is limited to delivery and low frequency of orders. During the research it was observed that these users are loosing motivation book a ride on Rapido as they are not motivated enough to book a ride and do not find sufficient value.
  • There is a potential to increase the frequency by running discounts . This will help in converting them into Core/Potential Loyalists.

Defining Core EnR Metrics

Definition of an active user

The below actions would define a Active user for Rapido

  • Booked at least one ride in past 1 month
  • Booked at least one parcel delivery in past 1 month
  • Booked at least one ride in a 1 month after purchasing a ride pass.

Ideal Engagement Framework

FrameworkSelectionReason

Key Metric to be tracked

Frequency

Primary

Definition

: Focuses on the number of times user completes a ride on the platform.

What does it mean for Rapido? Increasing the frequency of rides booked by the active user base.Why this will work?

→Optimizing for this helps in Habit building. Each interaction with the platform to book a ride helps users experience the Core Value Prop of the product, regardless of the distance or the ride option availed(Bike, Auto, Cab). Users value the below attributes during a ride and these are directly controlled by Rapido to ensure that users experience the CVP at every interaction.

1. Timely Availability of high rated captains

2. Supply demand match of rides for users at affordable prices

3. Pleasant ride experience

→Improving frequency will improve the TOMA for users and increases the likelihood of the app being the first choice when a need arises. It will improve the DAU counts and stickiness with the app.

More users interacting frequently will also improve the monetization as Rapido charges a flat booking fee for each ride.

No. of completed rides by an active user

Depth ( Time or Money )

Secondary

Definition

: Focuses on the average revenue generated per user & average revenue per ride

What does it mean for Rapido? Increasing the average transaction amount per userWhy this will work?

Optimizing for this focuses on commitment building. As active users engage more with the platform, having them perform larger ticket size transactions will help them get more value from the product. Ex: By paying a little extra, users who prefer booking a bike can get the comfort of an auto ride, likewise, those who prefer auto can opt for a cab ride. Similarly, frequent riders can get the benefit of assured discounts if they bought a pass. In both the cases, the average revenue per user goes up and if committed active users always have a higher chance of being retained.

-Average revenue per user

- Average transaction value / ride

-% of active users purchasing subscription passes

Breadth

No

Definition

: Focuses on number of sub-products used by the user.

What does it mean for Rapido? Increasing the exposure of other sub-products for it’s active user baseWhy this may not work?

In the case of Rapido users can avail the following combination of services-

1. Rides + Parcel Delivery - These 2 services do not supplement each other. Each one solves a different JTBD and cannot be combined to create a differentiated value prop for the user.

No. of sub products experienced by the user in a given time frame

Engagement Campaign

Product Hook

Product hook is an engagement feature ( could be a feature or a campaign) that ensures that active users continue engaging with the platform to realize the Core Value Prop.

The suggested product hook does not target any specific segment of the user base, instead applies to all users because the hook is targeted towards habit building and increasing natural user frequencies.

Rapido Ride Blaze - "Ignite your commute with Rapido Ride Blaze! Track and celebrate every ride you take with our dynamic streak program. Earn coins, set new records, and see how your journey lights up your path. Stay on fire and blaze through your rides with Rapido!”

Goal : To increase the frequency of ride bookings on Rapido


Attribute

Description

Goal

To increase the frequency of rides on Rapido by inculcating habit building behaviors among the user base

Success Metric

% increase of user base of Core users during a defined period ( M1, M2, M3)

% Increase in user base of Power users during a defined period (M1, M2, M3)

% increase in DAU, WAU, MAU counts after feature rollout

% increase in user retention

% increase in usage of rapido coins for ride bookings

NPS

Problem Statement

How to build a habit around ride booking and track them in a way that can be meaningful for the users?

Current Alternative

Currently, rides taken by users are not tracked anywhere within the app. Users get some rewards on completion of a trip in the form of scratch cards, but that is not very evident among users.

Solution

Build a Streak Feature called - Ride Blaze, which records each completed user ride in the form of a streak. Each streak unveils a scratch card which contains surprising rewards in the form of Rapido coins, or flat discounts that can be used for future rides. The Streak would also contain milestone based reward where user gets -

→ 3 Rapido coins for every 100Rs spent on a ride till 20 rides

→ 2X Rapido coins for every 100 Rs spent after completing 20 rides

→ 3X Rapido coins for every 100 Rs spent after completing 40 rides

→ 100 Rs. in wallet on completing every 30 rides in a month

→ Free subscription pass worth 499 on completing > 50 rides within 60 days

Why will this work?

Similar streak building behaviors have been successfully experimented by other B2C apps where users get incentives for performing routine transactions on the app as part of the steak program. When users participate in a steak program, there are 2 main factors that come to plays-

→ Human Beings are inherently competitive in nature and adding users to streaks ignites a sense of competition in users where the would like to keep attaining higher goals, specially if the stakes keep increasing as milestones rise.

→ Visual tracking and display of a particular habit (ride booking in this case) leads to delight in users where they can continually track their progress and milestone achievements.

→ There is a psychological component of variable and surprise rewards which motivates users to keep continuously engaging with the app inorder to reap higher rewards as their engagement level increases.

image.png

In the best case scenario where a Power user completes 30 rides in a month, here is the financial impact of the streak reward program

  • User completes 30 rides in a month
  • Average ride value - 200 Rs Total ride value in a month - 30 * 200 = Rs. 6000
  • Rapido coins gained -
    First 20 rides - 200 * 20 = 4000/100 = 40 * 3 = 120 Rapido Coins
    Next 10 rides - 200 * 10 = 2000/100 = 20 * 3 * 2 = 120 Rapido Coins Total Rapido Coins gained - 240
    Wallet money gained on completing 30 rides- 100 Rs Total monetary discount offered - 240+100 = 340 Rs
    % discount per user compared to ride value - 340/6000 - ~ 5.6%
    In addition to these, users would get scratch cards which would give variable discounts. The total discounts should not exceed 10% of the average ride value.

The above product hook itself is a campaign for all the active users of Rapido. Apart from these, the below engagement campaigns are detailed out -

Engagement Campaigns

  1. Campaign for Casual User - Hibernating or In Danger mode These users current frequency is 1 ride per month or < 1 ride a month and recency of ride booking is > a month. They are either using Competitor platform (Uber/Ola) for better discounts or are using alternative modes of transport entirely. Why it will work- These users have lost motivation to engage with the platform and Campaign 1 and 2 will encourage them to keep coming back to Rapido and create a habit.


Campaign 1

Campaign 2

Goal

Increase the frequency of ride bookings by motivating the user through offered discounts and create a habit.

→ Get user to book at least 1 ride in a month

Increase the frequency of order by motivating the user through offered discounts and create a habit.

→ Get the user to book at least 2 to 3 rides in a month

Target Segment

Hibernating User

In Danger User

Offer

→Book a bike/auto/cab ride and instant discount of 50% on your cab fare!

→Book the next 2 cab rides at a 25% instant discount

→Book your ride now and get a 25% off. Complete 3 more rides at 10% off and get the 5th ride free.

Campaign Pitch/Content

Hey <name>, it’s been a while. We’ve missed helping you beat the traffic. Here’s a one time offer only for you! Click here to claim it. Let’s ride together! * Offer valid only for 7 days

"Long time, no ride! Super saver days are here. You have a free ride calling you. Wait no more, book your ride and zip through the traffic!” * Offer valid for 2 weeks

Channel

Push Notification, Email, WhatsApp

Push Notification, Email, WhatsApp

Frequency

Twice a week

Three times a week

Time

Start Monday morning at 7 AM

Wednesday evening 5 PM

Monday morning at 7 AM

Wednesday evening 5 PM

Thursday morning 7 AM

Success Metric

- % CTR of push notification/email/whatsapp (segmented by day/time)

- No. of rides booked by user within 7/15/21/28 days

- Average revenue per user

-No. of CTR users claiming 1st discounted ride

- No. of CTR users claiming 2nd second ride

- No. of CTR users claiming 3rd discounted ride

- % of users giving 4/5 star rating for discounted rides

% of referrals made by users claiming discounts

- % CTR of push notification/email/whatsapp (segmented by day/time)

- No. of rides booked by user within 7/15/21/28 days

-Average Revenue per user

-No. of CTR users claiming 1st/2nd/3rd/4th discounted ride.

-No. of users claiming free ride.

- % of users giving 4/5 star rating for discounted rides

-

% of referrals made by users claiming discounts

  1. Campaign for Core Users - Potential Loyalist and Loyalists These users currently frequency is 1-2 ride bookings per week. Goal is to increase the frequency of order through other features and also increase the depth of interaction Why it will work - These users display some degree of commitment building but need a push to become long term committed users. They are also willing to explore other offerings at Rapido and need some incentives to start using them to the fullest. These Campaigns will push them to start using other value added features like Subscription pass, Rapido Coins and Wallet money.

Campaign 3Campaign 4
Goal

Increase the frequency of ride bookings and encourage to purchase Ride pass, to build commitment building behaviors

Get user to buy a pass and book at least 1 ride per week

Increase the natural frequencies of the ride bookings ( specially for larger ticket size rides)and also target to get users to renew their subscriptions for longer periods

Get users to increase their bookings from 2-3 times a week to 3-4 times a week and also begin to buy/renew a pass consistently, along with use of the parcel delivery sub product

Target Segment

Potential Loyalist

Loyalists

Offer

Get a 1 month pass at only Rs 99/- Get 50% off on next month pass renewal! Use RENEW50 to avail the exclusive discount

Renew your cab pass NOW to start saving BIG. Your 3 month pass is 3

99 ,

just for Rs 199!!!

Campaign Pitch/Content

Here’s something really special for you. Enjoy the power of exclusive discounts with your ‘Power Pass’. Pay 99 only and get upto 50% off on month long rides. Save all month long!

Your BIG SAVINGS DAY is here! Renew your pass today for 3 months at a 50% discount. What’s more, get a flat 25% discount on each parcel delivery booking

Channel

Push Notification, Email, WhatsApp

Push Notification, WhatsApp, In app banners

Frequency

Twice a week

7/5/3 days before pass expiry. Once each day

Time

Start on Monday 7 AM

Rotate the pitch/content mid-week morning

Day 7 - 8 AM

Day 5 - 6 PM

Day 3 - 8 AM

Success Metric

- % CTR ( segmented by channel)

- % CTR users completing 1 ride within 7 days

% Users buying the 1 month pass

% users renewing subscription for 2nd month

-ARPU

- % CTR (segmented by channel)

- % CTR completing 2 or more rides within a week

% of users renewing their pass

- no. of rides completed per user during pass period

- no. of parcel delivery bookings / user

-ARPU

Ramp-up Milestones

- Increase in number of subscription after 1 month

- MoM renewal rates

  1. Campaign for Power Users - Champions

These users ride booking frequency is high, and are using at least 1 sub-feature. The objective is to engage deeply with the product and have them use the features that lead to commitment building. They usually have pass subscriptions. Why it will work - These users are already engaging with the platform and display high degree of frequency and commitment. The idea is to continue to build onto their existing habits and continue to build deeper engagement with the platform. These users will be loyal advocates of Rapido and will go the extra mile to refer and get other users onto the app.


Campaign 5

Campaign 6

Goal

Increase the bookings of scheduled / pre-booked rides

Increase the frequency of wallet recharge by power users. Since their frequency is high, there is very high likelihood that they would prefer money in their wallet for the ease of transaction during ride completion. Adding money to wallet is a sign of commitment and will ensure users return to Rapido.

Target Segment

Champions

Champions

Offer

Get flat 20% off on next 5 pre-booked rides

→Add 500 now and get Rs 25 Cashback

→Add 1000 now get Rs 50 Cashback

→Add 1500 now and get 100 Cashback

Campaign Pitch/Content

Feeling the morning rush? Skip the stress and pre-book your rides on Rapido! Lock in your ride, save time, and get exclusive discounts. Your hassle-free mornings start here—book now!

Get ready to save in style! Super Saver Days are here—add cash to your Rapido wallet and upto 100Rs Cashbacks roll in. Don’t wait, level up your wallet game NOW! 💸

Channel

Push Notification, WhatsApp

WhatsApp, in App banners

Frequency

3 days in a week, around 9.30 PM, starting Sunday

Once in 15 days

Time

9.30 PM on Sunday

8 PM on Tuesdays

10 PM on Thursdays

Start Saturday morning

Rotate the pitch/content mid-month

Success Metric

-Open Rate

-% CTR (Segment by channel type)

- Opt our rate for push notifications

- % users scheduling rides

- % Cancellation % of scheduled rides (Segment by user cancellation or driver cancellation)

- Completion % of scheduled rides

- % of rides scheduled by user within next 24 hours

- Ratings of scheduled rides ( % of 5 v/s % of 1)

-

- % increase in ARPU

- % increase in LTV

- % CTR (Segment by channel type)

- % completed rides paid by wallet money

- % CTR users recharging their wallet

- Average recharge amount per transaction per user

- % increase in ARPU

Ramp-up Milestones

- Increase in number ride bookings per user

- Increase in usage of wallet transaction 30/60 days

- Increase in ride MoM bookings

Retention Design

There is very little public data to indicate the retention figures of ride sharing platforms in India. However, since the ride sharing market is very competitive and quite fragmented dominated by large players, there is very high churn of users. The retention rates vary by the product, however, the average retention rate hover around 10-20% and it would be no different in the case of Rapido as well.

Retention rate for Uber - 10-20%. Lets take the higher figure 20% as our benchmark.

Attribute

Rational

Impact on Retention

Time to Value

Fairly quickly, the same as competition

Nil

Natural Frequency

Weekly, the same as competition

-5%

Competition

Very High

-5%

Brand Value

Fairly good

+5%

Unique features not present with competition

Brand recall as a Bike Taxi provider and more economical as compared to competition

+5%

Cost of switching

Like any other B2C product, the cost of switching is very low. Customers usually do not have any strings attached with a given product, hence find it very easy to switch among competitors. And this is exactly the reason why the big players have begun introducing commitment building features like subscription passes, wallet recharge, ride scheduling etc., to ensure that customers start building the depth of engagement due to which switching costs will be relatively higher.

Nil

Customer Behavior

Customers are extremely price sensitive when it comes to booking rides. User research indicated that the loyalty towards a particular product is very low as price factor dominates the brand affinity. Also, since a ride lasts for few mins to a couple of hours (at max), customer only experiences the CVP for that period and there are no experiences to prolong that feeling once the ride completes, which makes brand loyalty a tough but to crack.

Nil

Market Dynamics

Ride availability is a very big factor that influences customer’s choice of a product when a ride is needed. A lot of customers tend to cancel a ride if the wait time is more than 7-10 mins and prefer rebooking the ride on another platform. Since the number of available drives on a given platform is constant at a particular time, which ever platform can offer the quickest ride is usually chosen.

-5%

Estimated retention for Rapido


~15%


At what time period does your retention curve flatten?

Since the natural frequency is weekly, the retention curve flattens around weeks 9-12


Which ICP's drive best retention?

The Core and Power users drive the best retention for Rapido

  • Core Users : The average order frequency for these users are 1-2 rides a week. They also occasionally book a parcel delivery. Their monthly spend ranges from 1400-1600 Rs on Rapido. (Considering average price of ride - 200). They could be booking any of the rides, but certainly do display a affinity to come back to the platform.
  • Power Users: The average order frequency for these users are 3-4 rides from Rapido. Their monthly spend ranges from 3200-3600. They book rides across categories, but also book a larger proportion of higher value rides. They show strong commitment features too.

Which Channel drives best retention?

  • Organic: Rapido has a good percentage of users coming back to the app organically.
  • Push notifications - Rapido’s push notification strategy is smartly devised by having catchy messages come up at staggered intervals. It does not seem intrusive and communicates the message in a short, concise format. Since this is very targeted, there is a scope for lot of conversion and engagement by users who come via this channel.
  • Social Media - Social media ads are a strong retention lever for Rapido because they allow the brand to continuously engage with users through personalized content, reminders, and promotions, keeping the service top-of-mind. Additionally, these ads can effectively communicate new features or safety measures, fostering trust and encouraging repeat usage among existing customers. They have a very active social media presence and had a large campaign run during the IPL, for awareness and acquisition.
  • Emails - Perhaps the least effective of the 3, since most users have a tendency to skip marketing content via emails. User research also indicated that users rarely acted on these emails, unless the value prop was really high.

Which features drive the best retention

  1. Affordable pricing for rides
  2. Bike Taxis
  3. Safety measures
  4. Scratch cards after each ride

Churn

Definition

Churned users are users who were once active ( have placed orders in the past ) but have not booked a ride in more than 6 months. Assuming 6 months as a hibernating user books at least one ride in 6 months.

Reasons for churn - in order of priority


ReasonCategoryUser Insights

Categorization

Lower Discount Offers/Coupons

Voluntary

Competitor Offers better discount

Price

High Ride Surcharge

Voluntary

Competitor has no/lesser surge charge

Price

Competitor App has better subscription pass deals

Voluntary

Better subscription deals from competitors

Price

Lack of ride availability

Voluntary

Captains not available in the vicinity of pickup

Ride Issues

Driver cancellations

Voluntary

Driver’s voluntarily cancel the rides

Ride Issues

Ride booked but driver keeps changing, long wait times

Voluntary

Captain reassignment as drives are auto assigned the ride and they cancel

Ride Issues

Ride delayed

Voluntary

Incorrect ETA without proper reason

Ride Issues

Ride on time but poor Ride Experience

Voluntary

Inappropriate captain behavior, vehicle not clean, language problem, chosen wrong route etc.

Ride Issues

Bad Support Experience

Voluntary

Unable to reach support easily or support staff unable to satisfactorily resolve issue. No escalation mechanism

Support

Bad UX or ride booking flow

Voluntary

User unable to select pick up and drop locations easily, options not easily readable

App issues

App keeps crashing

Voluntary

App has performance issues

App issues

User moves to an area where Rapido services unavailable

Involuntary



User’s company only reimburses for cabs booked from competitor platforms

Involuntary

Some users preferred to use only Ola/Uber due to a company tie up with them.


User buys own vehicle or starts using public transport

Involuntary

As the income rises, there is a tendency to start owning a vehicle to cater to needs beyond regular city travel. In such cases, the frequency of user rides usually comes down till a point where user no longer engages with the platform.


Death/Prolonged illness

Involuntary



Negative Actions indication potential churn of users

  1. User signing out of the app
  2. App uninstalls
  3. Consistently Bad reviews for rides
  4. Sudden surge of support tickets
  5. Non-renewal of subscription passes
  6. Reduction in natural frequency of rides
  7. Unlinking payment methods from accounts (Amazon Pay /Simpl)
  8. Money not added to wallets any longer
  9. High ride abandonment rate ( User selects source and destination, but does not confirm rides)
  10. High ride cancellations
  11. Reduction in app open rate
  12. Negative reviews on social media platforms
  13. Low NPS/CSAT scores

Resurrection Campaigns

Resurrection campaigns are mainly targeted at already churned users or users who are at risk of churn.

Themes of resurrection campaign

  • Acquire churned users by
    • Offering lucrative discounts to return back to the app
  • Retain at-risk of churn users
    • Offer discounts to keep up/increase the natural frequency of bookings
    • Improve ride experience for dissatisfied users by personalized engagement


Resurrection Campaign

Resurrection CampaignHypothesisChannel of DistributionPersona/Type of User

Offer

Pitch and Content

Goal of the campaign

Frequency and Timing

Success Metrics

Campaign 1

Users not booking as per their natural frequency need a reminder/nudge to continue the engagement. An instant discount acts as a trigger for users to consider Rapido, where as a validity period creates a sense of urgency and forces them to act, leading to engagement.

→Push Notification

→Whatsapp

At Risk users. Mainly for users who are not booking as per their natural frequency (> 3 months)

Offer instant discounts via coupons for the next ride! 25% off. Valid for 7 days

Hey [Your Name], where’ve you been? We are missing you 🙂

Your next ride’s waiting with 25% off! This deal’s too hot to last—grab it in the next 3 days! Let’s roll! 🚗💨

Increase repeat bookings

3 days before the natural frequency of user.

Frequency - Once Daily

Time:

Day 3: 8 AM

Day 2: 5 PM

Day 3 : 9AM

→​%CTR

->% of CTR user redeeming discount coupons by booking rides

→% users booking the 2nd ride within 7 days of redeeming coupons

Campaign 2

Churned users need a very strong reason to come back to the app. Their motivation levels are low and would need something to lower their barriers to book. An instant discount of 50% will significantly reduce the mental friction to book. Successive discounts of 25% will ensure that users stay engaged within the first few days/weeks.

→Whatsapp, →Email

Churned Users who are lost to competition

Offer instant discounts via coupons on next 3 rides - 50% on first ride and 25% on next 2 rides. First ride Offer valid for 7 days

We miss you! Ready to switch back? Here’s a sweet deal for you. Get 50% off your first ride and 25% off the next two. Your 50% off deal is valid for 7 days—come back and ride in style!

Resurrect churned users

3,5,7 days after app uninstall.

Frequency - Once Daily

Time:

Day 3 : 10 PM

Day 5 : 8 PM

Day 7 : 8 AM

→​%CTR

->% of CTR users installing the app

→% app installs to ride booking

→ %returned users claiming discounts for 1st/2nd/3rd ride

Campaign 3

Users who have signed up but who display signs of hesitation are mostly comparing prices among other apps, Such users need a strong push to move ahead to complete their booking process. An instant discount with a time validity will nudge the user to act and force them to abandon competitor and complete their booking at Rapido

- Whatsapp, Push notifications

For new users who have signed up but yet to book a ride

Fare Slash! 15% off on all rides for the next 24 hours

Hey there, ! 🎉 Feeling stuck? Haven’t taken your ride yet? Now’s the perfect time—enjoy 15% off all rides for the next 24 hours. Don’t miss out, book now and cruise in style! 🚗💨

Reactivate Dormant users

3,5,7 days after app install.

Frequency - Once Daily

Time:

Day 3 : 8 M

Day 5 : 9 AM

Day 7 : 8 AM

→​%CTR

->% of CTR users claiming discount

Campaign 4

Users who have a bad ride experience ( for whatsoever reasons) are at the highest risk of churn. Such users are usually frustrated and are extremely unlikely come back to the app . Offering a free ride shows strong signs of customer commitment by Rapido. Users will experience delight when such offers given without questions asked.

- Whatsapp

Email

Users who rate a ride as 1/2 or who leave negative ratings on play store/social media.

Next ride free - Claim within 7 days

Hello <Name>,

We’re sorry your last ride didn’t hit the mark. Let us make it up to you with a free ride on us! 🚗 Claim it within the next 7 days and experience the ride you deserve. We’re ready to turn things around!

Delight dissatisfied users

The rating should be validated by user calls

Frequency - One time campaign

→% CTR

→% CTR claiming the coupon

→NPS of users claiming discount

→Ride ratings from users claiming free ride

Campaign 5

Users, regardless of the category, get extremely frustrated when repeated driver cancellations happen. User’s JTBD is hindered and in the process, there is a definite chance of user dissatisfaction and subsequent churn. Users who have had more than 3 captain cancellations in a single ride or users who have had to wait for more than 10 mins after a captain reassignment or users having driver cancellations in 3 or more consecutive trips should be identified and targeted via whatsapp messaging and email. Showing a concern to such users reaffirms Rapido’s customer first approach and would avoid risk of user churn. A direct wallet recharge is like money in their hands and encourages users to continue engagement.

Whatsapp, Push notifications

Users who are trying to book a ride but see very high captain side cancellations

Wallet recharge for 100 Rs. to be used within next 7 days

Cancellations are not cool, and we are totally with you .We noticed your ride got canceled😕 To make it right, here's ₹100 in your wallet for your next ride! Use it within 7 days and enjoy a smoother experience. Let’s get you back on the road! 🚗

Delight dissatisfied users

Cancellations should be validated by user calls.

Frequency - One time campaign

→% CTR

→% CTR using wallet cash

→ NPS of users

→Ride ratings from users for subsequent rides

Happy riding!

Rapido-all-services-1-1.jpg

Nitin - GX21















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