Two- and three-wheeler manufacturer TVS Motor Company has signed an MoU with on-demand delivery and mobility platform Rapido on Wednesday to leverage synergies of their respective businesses in the fast-moving mobility market.
The company said that hyperlocal mobility, buoyed by an increasing urban population with ready access to smartphones and increasing penetration of e-commerce and on-demand services, has boomed into a potential $158 billion opportunity. With the MoU, TVS and Rapido will bring in their strength in mobility and technology platform to deliver a winning proposition.
The partnership will cover both two-wheelers and three-wheelers in both ICE and EV segments.
Sudarshan Venu, Joint Managing Director at TVS Motor said, “We have always been at the forefront of driving electrification in the industry with our continued focus on EVs and Future mobility. Rapido has built a strong user base of Captains and Riders and is the leading bike-taxi platform in India today. We believe we can expand our reach in the mobility and hyper-local segments using high- quality, connected products from the TVS Electric portfolio and financing from our group. We believe that TVS Motor, TVS Credit and Rapido can be long term strategic partners as this ecosystem matures further.”
Aravind Sanka, co-founder at Rapido said that the company is aiming to plug their first and last-mile daily commuting gaps in the country.
“The ultimate objective is to help millions of more Indians commute through an affordable, comfortable, convenient and safe alternative mode of transport,” he said.
The deal is in line with TVS Motor’s announcement to expand its electric product portfolio of 5-25kW two- and three-wheelers by launching all of them by mid-2023. The company aims to have electric vehicles across segments like delivery, commuter premium, high-performance sports, and electric three-wheelers. It also is aiming to expand the presence of the TVS iQube Electric across the country.
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