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The phrase "are doing rather well" is correct and usable in written English.
It can be used to describe someone's current state of success or performance in a positive manner.
Example: "Despite the challenges, the team members are doing rather well in meeting their targets this quarter."
Alternatives: "are faring quite well" or "are performing well".
Exact(13)
As Asia's two most populous countries disappoint, ASEAN's two giants are doing rather well.
Moreover Lancashire, with a cast of no stars, are doing rather well in the Blast.
Still, militia leaders and corrupt army commanders targeted by the Dodd-Frank law are doing rather well.
On the Orwellian front, we are doing rather well – as the revelations of Edward Snowden have recently underlined.
An entire society has been destroyed, but the corporations that operate in the ruins are doing rather well.
So the old are doing rather well, helped in Britain by the "triple lock" on pensions as well as rising asset prices.
Similar(46)
"Catholicism, by contrast, is doing rather well.
The Warwick Atheists were doing rather well.
By rights, nightingales should be doing rather well.
By that standard, the United States is doing rather well.
But she's all right now – in fact, she's doing rather well.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com