What is the story about?
What's Happening?
Rapido, an Indian ride-hailing platform competing with Uber, has doubled its valuation to $2.3 billion after Swiggy sold its 12% stake in the company. The stake was sold for approximately $270 million, with Prosus acquiring 10% and WestBridge Capital purchasing the remaining 2%. This development comes as Rapido ventures into food delivery, a sector dominated by Swiggy and Zomato. Rapido's entry into food delivery follows its partnership with Swiggy as a last-mile delivery provider.
Why It's Important?
Rapido's increased valuation and expansion into food delivery signify its growing influence in the Indian market, challenging established players like Swiggy and Zomato. The strategic move could pressure existing food delivery companies to adjust their business models and pricing strategies. Rapido's success in diversifying its services may encourage other ride-hailing platforms to explore similar opportunities, potentially reshaping the competitive landscape in India's delivery and transportation sectors.
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