Rapido Ventures into Food Delivery Market in India
Rapido, a well-known ride-hailing platform in India, has quietly started testing its new food delivery service in Bengaluru, a strategic move to compete with established players like Swiggy and Zomato in the rapidly growing delivery market.
The startup, which has been in operation for a decade, is currently testing its food delivery service in select areas of Bengaluru, including Byrasandra, Tavarekere, Madiwala (BTM) Layout, Hosur Sarjapura Road (HSR) Layout, and Koramangla. Rapido’s co-founder and CEO Aravind Sanka confirmed the beta testing phase to JS.
To launch its food delivery service, Rapido established a subsidiary named Ctrlx Technologies, under which the service operates as Ownly. The subsidiary, led by Sanka and Rapido Vice President of Finance Vivek Krishna, was created to potentially avoid conflicts of interest with Swiggy, which currently holds a minority stake in Rapido.
The Ownly app, now available on Google Play, offers food from nearby restaurants at prices approximately 15% lower than competitors like Swiggy and Zomato. This pricing strategy is made possible by Rapido’s decision not to take commissions from restaurants, unlike other delivery apps, and instead charge a fixed fee per order.
Rapido’s Unique Approach to Food Delivery
Rapido utilizes its extensive fleet of vehicles, including millions of two-wheelers, to facilitate food delivery alongside its existing taxi and courier services. The company aims to optimize delivery routes by showcasing restaurants in close proximity to customers, reducing fuel costs and delivery times.
The startup also leverages data insights gained from its partnership with Swiggy to identify peak hours and popular restaurants, enhancing its own food delivery service’s efficiency and customer satisfaction.
Founded in 2015, Rapido initially focused on bike taxi services before expanding into auto rickshaws, parcel delivery, and logistics. In recent years, the company diversified into the cab business and formed strategic partnerships to enhance its offerings and market presence.
India’s Booming Food Delivery Market
The online food delivery market in India is projected to exceed ₹2 trillion by 2030, attracting significant investments and competition from key players like Zomato and Swiggy. With a 58% market share, Zomato leads the industry, followed by Swiggy with 42% market share.
Rapido, with its innovative approach and strong investor backing, is poised to disrupt the food delivery market and capture a significant share of the growing industry. The startup has raised $574 million in funding across multiple rounds and operates in over 250 cities, handling millions of rides daily.
As Rapido continues to expand its services and offerings, its foray into food delivery showcases the company’s commitment to innovation and diversification in the competitive Indian market.