Bike-taxi platform Rapido is set to enter India’s food delivery space with a pilot launch of its new offering, Ownly, in select Bengaluru neighborhoods including Koramangala, HSR Layout, and Sarjapur over the next 8–10 days. The company plans to gradually expand to 10 cities by July 2025, according to sources familiar with the matter.

Backed by investors like Prosus, Nexus Venture Partners, and WestBridge Capital, Rapido is aiming to disrupt the food delivery sector — just as it did with ride-hailing — by offering restaurants a significantly lower commission structure (8-15%), compared to the 16-30% typically charged by industry incumbents Zomato and Swiggy.

A Partnership-First Approach

In a bid to differentiate itself, Rapido is in the process of signing a memorandum of understanding (MoU) with restaurant associations to set clear expectations from the start. As part of this partnership model, Rapido is reportedly open to sharing customer data with restaurants — a long-standing demand in the industry that Zomato and Swiggy have largely resisted.

Restaurants, in return, have been asked to maintain lowest cart-level pricing on Ownly across all platforms and avoid excessive packaging charges. Rapido has also requested that restaurants offer 4-5 menu items under ₹150, aligning with its vision of creating a budget-friendly, sub-₹150 meal segment.

No Platform Fees — At Least for Now

While Rapido currently does not plan to levy platform fees, discussions are ongoing about setting an upper cap if such fees are introduced in the future. The goal, according to a restaurateur familiar with the discussions, is to build a more collaborative and sustainable ecosystem than the one that evolved around existing players.

Industry Reaction & Challenges Ahead

The pilot comes at a time when growth in India’s food delivery space is showing signs of plateauing. A recent BNP Paribas research note expressed skepticism, stating Rapido’s low commissions could be “below the variable cost per delivery”, raising concerns about long-term sustainability.

The note also questioned whether Rapido’s existing fleet of drivers — primarily serving taxi and bike-hailing needs — can effectively double as food delivery partners, given the distinct logistics, bags, and operational models involved.

Interestingly, Swiggy, a direct competitor, is also an investor in Rapido. Swiggy CEO Sriharsha Majety recently remarked that surviving and scaling in the food delivery space has historically proven challenging, even for giants like Uber, Ola, and Amazon, all of whom eventually exited or scaled back their ambitions.

“There were a dozen players in food delivery in 2015… It’s not easy to get an opening that you can take a home run with,” Majety said, while adding that innovation and agility will continue to be key.

Looking Ahead

Rapido’s Ownly is still in its early stages, but its low-cost, restaurant-first approach, coupled with lessons from its ride-hailing journey, could present an interesting alternative in India’s crowded food delivery space.

The next few months — particularly in Bengaluru — will be critical in determining whether this model can be scaled sustainably and meaningfully challenge the Zomato-Swiggy duopoly.

News Credits- Startup STORY