Rapido is cooking up something new! The popular ride-hailing app is reportedly entering the online food delivery market — and it’s aiming to win hearts (and restaurant partners) by charging lower commissions than big players like Swiggy and Zomato.
Rapido Joins The Menu With Cut-Rate Commissions
Rapido, the Bengaluru-based ride-hailing startup, is now entering the food delivery market to compete with Swiggy and Zomato, two well-known, powerful companies. Unlike Swiggy and Zomato, which charge commissions ranging from 15 to 30%, Rapido will provide restaurants with fixed-rate commissions of 8 to 15% to attract customers.
With its new partnership with the National Restaurant Association of India (NRAI), Rapido makes an official move into the food delivery market with its own ordering platform, even though it has been quietly operating for a while. The project is scheduled to launch in Bengaluru and gradually spread to other cities, with plans to launch in late June or early July.
Rapido would collect a fixed fee of Rs 25 for transactions under Rs 400 and Rs 50 on orders over Rs 400, according to the partnership agreements. This corresponds to 8–15% restaurant commissions, as opposed to Zomato and Swiggy’s 16–30% commissions. The Rapido app, which lists restaurants, will allow customers to place orders.
“Over the past few months, we have been in communication with Rapido regarding our tight collaboration with ONDC (Open Network for Digital Commerce). Without revealing specifics, NRAI president Sagar Daryani told the media source, “We are talking about a structure which is economically and democratically much more viable for restaurants to sustain.”
The National Restaurant Association of India (NRAI) and ride-hailing unicorn Rapido are in advanced talks to onboard eateries for Rapido’s entry into the food delivery market. Representing more than 500,000 restaurants nationwide, NRAI has been advocating for a competitive “third player” in a sector that is currently ruled by Swiggy and Zomato, which together hold a 95% stake.
This has the potential to revolutionize the restaurant industry, particularly for smaller businesses. “This structure is far more sustainable.” “It provides restaurants with more control over their customer data and more margin flexibility, something the larger platforms don’t readily provide.” “The industry needs this kind of democratic and economically viable solution.”
The zero-commission Software-as-a-Service (SaaS) model that is subscription-based and completely does away with commissions is the second strategy. Rather, restaurants would pay a set monthly charge to employ Rapido’s delivery fleet and ordering technology. The successful switch to a subscription-based system for ride-hailing drivers by Rapido in late 2023 is modeled on this approach.
Rapido History And Founders
Rapido was started back in 2015 by Pavan Guntupalli, Rishikesh SR, and Aravind Sanka with a simple idea: make getting around Indian cities faster and easier. Instead of waiting for cabs, people could hop on a bike and zip through traffic at low prices. It caught on fast. From a handful of rides in Bengaluru to millions of users across India, Rapido became the go-to for affordable and quick two-wheeler rides. And now, they’re bringing that same convenience to your next meal, aiming to shake up food delivery with better deals for restaurants and smoother service for you.
Uber And Ola Made Efforts To Enter The Online Food Delivery Sector
Rapido is not the first app to enter the market for online food delivery. Ola purchased Foodpanda India in 2017 after making unsuccessful attempts to open Ola Cafe in 2015. Ola, meantime, just made a comeback via the government-supported digital network known as the Open Network for Digital Commerce (ONDC).
In a similar vein, the startup Uber introduced Uber Eats, an online platform for ordering and delivering meals, in India in 2017. However, it was unable to endure, as Uber left the market after selling to Zomato. Uber would acquire a 10% share in Zomato as part of the agreement.
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