New Delhi: Two-wheeler and three-wheeler maker TVS Motor Company said on Wednesday that it has signed a Memorandum of Understanding (MoU) with Rapido, the Bangalore-based bike-taxi startup.
“Buoyed by the increasing urban populations with ready access to smartphones, deeper penetration of e-commerce and on-demand services across India, bike cabs, taxis and the delivery represent a potential opportunity of a $15,” the company said in a statement.
“By signing this MoU, TVS Motor and Rapido join forces in mobility and transparency, respectively, to deliver a successful offering to a demanding user base. This comprehensive partnership will cover both the two-wheeler and three-wheeler and will extend to the ICE and EV segments.”
This MoU is in line with TVS Motor's previous announcements to expand its two-wheel and three-wheeler electric product range from 5 kW to 25 kW. All of them are to be launched by mid-2023.
The automaker aims to own electric vehicles in sectors such as delivery, premium mobility, high-performance sports, and electric three-wheelers, while expanding TVS iQube Electric's presence in major cities around the world.
According to a press release, TVS and Rapido will also look to take advantage of learning from the collaboration to improve the product usage experience for Rapido Captain and Rider base by offering an improved overall ride experience in the form of better routes to products, credit and financing. Other solutions and use cases provided through technological innovations.
Sudarshan Venu, TVS Deputy General Manager, said: “We have always been at the forefront of driving electric vehicles in the industry with our continued focus on electric vehicles and future mobility. Rapido has built a strong user base of skippers and cyclists and is the leading platform for bikes and taxis in India today.”
“We believe we can expand our reach in the mobility and hyper-personalization sectors with high-quality connected products from the TVS Electric portfolio and financing from our group. We believe TVS Motor, TVS Credit and Rapido can be long-term strategic partners as this ecosystem evolves.”
“Rapido has envisioned plugging India's first and last mile daily commuting gaps, not only in urban areas, but also beyond in Level 2 and Level 3. We are delighted with this strategic partnership with TVS Motor, which is an extension of our vision and will bring us one step closer to our goals. A collective and shared passion to transform and create the cornerstone of sustainable mobility in India. This association will help us enhance our capabilities and expand our fleet of electric bikes. Rapido's co-founder Aravind Sanka said, “The ultimate goal is to help millions of other Indians travel through an affordable, comfortable, convenient and safe alternative mode of transport,”