The Bangalore-based corporate’s loss rose 2.6 instances to Rs 439 crore from Rs 166 crore because it employed extra body of workers and spent extra on advertising after the pandemic.
“All over the yr, the corporate expanded its advertising campaigns and expanded its team of workers to pressure post-Covid enlargement. This led to an build up in general bills from Rs 254 crore to Rs 596 crore,” the corporate stated in its monetary statements.
Worker advantages spending rose 73% to Rs 106 crore from Rs 61 crore in FY21. Promoting and promotion spending has quintupled to Rs 176 crore from Rs 33 crore in fiscal yr 21. Rapido basically makes cash via charging commissions on journeys.
For the reason that pandemic, the Rapido has been increasing increasingly more into the three-wheeler class, difficult the duopoly of SoftBank-backed Ola and Uber.
The corporate additionally has a B2B vertical the place it directs drivers for meals and grocery supply corporations like Swiggy and Zomato. In April, he gained an funding of $180 million from Swiggy and TVS Motor.
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Just lately, the corporate has been dealing with rising scrutiny from native government because of the loss of licenses for aggregating each bicycles and automobile taxis. Rapido has come beneath hearth from attorneys eager about velotaxi products and services in different states as a result of taxis in India require yellow license plates to perform legally.
Bicycle house owners in India typically have common (white) license plates which don’t permit the driving force to hold passengers for money.
On January 20, the Bombay Prime Court docket pushed aside Rapido’s attraction towards a ruling via the Maharashtra executive that stripped him of his license to perform a bicycle taxi within the state.
The corporate additionally bumped into issues in Karnataka, in conjunction with Uber and Ola, because of inflated fares.