Rapido, a leading ride-hailing platform in India, has officially ventured into the competitive food delivery sector, aiming to disrupt the dominance of established players like Swiggy and Zomato.
The company recently launched its beta food delivery service, named Ownly, in three key localities of Bengaluru—Koramangala, HSR Layout, and BTM Layout—marking its first step into a market valued at over $8 billion.
Rapido’s Strategic Entry into Food Delivery
This move comes after months of speculation and pilot testing, with Rapido leveraging its extensive network of over 3.5 million daily rides to ensure rapid delivery times.
Unlike Swiggy and Zomato, which have faced criticism for high commission rates of up to 28%, Rapido is introducing a zero-commission model for restaurants alongside transparent flat delivery fees, as reported by industry sources.
Historical Context: A Duopoly Under Threat
The Indian food delivery market has long been dominated by Swiggy and Zomato, which together control a significant market share, leaving little room for new entrants.
However, Rapido’s success in disrupting the ride-hailing duopoly of Ola and Uber provides a blueprint for its ambitions to challenge the status quo in food delivery.
Potential Impact on Restaurants and Consumers
For restaurants, Rapido’s low-cost model could offer relief from the profit-skimming practices of larger platforms, potentially allowing them to retain more revenue.
Consumers, on the other hand, may benefit from lower prices due to the absence of inflated rates, packaging fees, and hidden charges that have been a point of contention with existing services.
Challenges Ahead for Rapido
Despite the promising start, analysts caution that scaling up in a market with entrenched players will be an uphill battle, given Swiggy and Zomato’s operational scale and loyal user base.
Additionally, Swiggy’s minority stake of nearly 12% in Rapido adds a layer of complexity, with reports suggesting Swiggy is re-evaluating its investment amid this new rivalry.
Looking to the Future
Looking ahead, Rapido plans a broader rollout of Ownly across other Indian cities if the Bengaluru beta proves successful, potentially reshaping the food delivery landscape.
As competition heats up, the entry of Rapido could spark innovation and better pricing, ultimately benefiting both restaurants and customers in India’s rapidly growing digital economy.
Andrew Lee
