In a bold strategic move, Indian ride-hailing platform Rapido has officially announced its entry into the country’s fast-growing food delivery sector. Known primarily for its bike taxi services, the Bengaluru-based startup aims to disrupt the market by offering a low-cost alternative to dominant players. This development, first confirmed through internal documents accessed by Reuters, has already sent ripples across the industry, prompting investor reactions and signaling a significant shift in the competitive landscape.
Rapido’s Game-Changing Approach
Unlike its well-established rivals, Rapido plans to eliminate commissions and adopt a delivery fee model that benefits both restaurants and consumers. According to internal documents, the company will charge restaurants a flat fee of ₹25 plus taxes per delivery for orders above ₹100. For smaller orders under ₹100, a slightly higher charge may apply, although no exact figure has been disclosed.
Most notably, Rapido will not take any commission from restaurants on the food order value, a major deviation from industry norms. In contrast, platforms like Swiggy and Zomato currently charge commissions ranging from 16% to 30%, creating significant cost burdens for restaurant partners. Rapido’s fee structure offers clear financial relief to food outlets, many of which have long voiced concerns about the high charges levied by established aggregators.
Transitioning to a Subscription Model
While the initial rollout will rely on the flat-fee system, Rapido eventually plans to implement a fixed subscription fee model for restaurants. This step could provide more predictable revenue for the company while ensuring ongoing affordability for participating eateries. However, no timeline has been disclosed for this transition, leaving room for speculation about long-term sustainability.
Strong Synergy with Rapido’s Core Capabilities
Rapido’s foray into food delivery builds naturally on its existing logistics and mobility infrastructure. With a vast network of bike riders and a strong presence in more than 100 Indian cities, the company possesses the operational backbone required to support quick and efficient deliveries. Leveraging its existing fleet allows Rapido to keep costs low while ensuring widespread service availability from day one.
Moreover, by using its current rider base, Rapido can scale operations without incurring the high setup costs typically associated with launching a new vertical. This strategic synergy gives Rapido a clear operational advantage over newer entrants and could help it rapidly expand its market share.
Conclusion: A New Chapter in Food Delivery
Rapido’s entry into the food delivery sector marks a pivotal moment in India’s digital commerce evolution. By challenging established norms and introducing a cost-effective alternative, the company has not only broadened its business portfolio but also raised critical questions about fairness and sustainability in food logistics. Whether this bold move pays off remains uncertain but one thing is clear: India’s food delivery race just got a lot more interesting.
