Rapido plans to undercut Swiggy, Zomato duopoly

Ride-hailing platform Rapido is in advanced talks with restaurants and industry associations across four major metro cities to challenge the dominance of Swiggy and Zomato, which together command an estimated 95% market share. The move comes at a time when restaurants have been voicing growing concerns over high commission rates and potential conflicts of interest following the launch of Swiggy’s ‘Snacc’ and Zomato’s ‘Bistro,’ both of which promise ultra-fast 15-minute deliveries.

The Bengaluru-based startup, which recently claimed to be the largest ride-hailing platform with over 3 million daily rides, is exploring two distinct models to break into the food delivery market. The first approach involves integrating restaurants into the Rapido app while charging significantly lower commissions compared to the 25-35% levied by Swiggy and Zomato. Seller-side platforms on the Open Network for Digital Commerce (ONDC), such as GrowthFalcon, typically charge 8-10%, while buyer-side platforms like Magicpin take a 10-15% cut. Rapido aims to offer restaurants an even more competitive alternative.

ALSO READFashion seasons get shorter: Cut, stitch & sell in a month

The second approach is a subscription-based SaaS (Software-as-a-Service) model that eliminates commissions entirely. Restaurants would instead pay a fixed monthly fee to use Rapido’s ordering technology and delivery fleet. This model mirrors Rapido’s successful transition to a subscription-based system for ride-hailing drivers in late 2023.

“Any segment where affordability for consumers and earnings for driver partners can be improved represents a potential opportunity for Rapido,” co-founder Pavan Guntupalli had said in an earlier interaction with FE. However, the company declined to comment on its food delivery strategy.

ALSO READBizongo ramps up logistics arm to boost platform play

Challenging the Swiggy-Zomato duopoly has proven difficult in the past. Mumbai-based Thrive, backed by Jubilant FoodWorks (35% stake) and Coca-Cola India (15% stake), shut down in December after struggling to compete despite raising $2.5 million.

 » Read More

Related Articles

Should you withdraw or reinvest your matured investments?

When an investment matures, you face a crucial decision: withdraw the funds or reinvest them for future growth. The right choice depends on your financial goals, market conditions, and liquidity needs. Reinvesting can help build wealth through compounding, while withdrawing may be ideal for immediate expenses or reallocating to better opportunities. Understanding the pros and

Starlink’s India entry a challenge for telecom Majors? Key factors to watch…

With Bharti Airtel and Reliance Jio announcing their respective agreements with SpaceX, JM Financial said that this tie-up is largely neutral for the two telecom companies and there seems to be no significant risk to growth potential for Indus Towers. Currently, the agreement between the two telcos and SpaceX is limited to distributing Starlink’s satellite

Ola Electric shares slump 6%- 4 key concerns for investors are…

OLA Electric Mobility has been continuously in the eye of the storm. The share price fell below Rs 50 per share on the National Stock Exchange, down 6.2% intra-day. This is after Rosmerta Digital Services initiated insolvency proceedings against OLA Electric Mobility’s wholly-owned subsidiary, Ola Electric Technologies, for non-payment of incurred services. Rosmerta initiates bankruptcy

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

Should you withdraw or reinvest your matured investments?

When an investment matures, you face a crucial decision: withdraw the funds or reinvest them for future growth. The right choice depends on your financial goals, market conditions, and liquidity needs. Reinvesting can help build wealth through compounding, while withdrawing may be ideal for immediate expenses or reallocating to better opportunities. Understanding the pros and

Starlink’s India entry a challenge for telecom Majors? Key factors to watch…

With Bharti Airtel and Reliance Jio announcing their respective agreements with SpaceX, JM Financial said that this tie-up is largely neutral for the two telecom companies and there seems to be no significant risk to growth potential for Indus Towers. Currently, the agreement between the two telcos and SpaceX is limited to distributing Starlink’s satellite

Ola Electric shares slump 6%- 4 key concerns for investors are…

OLA Electric Mobility has been continuously in the eye of the storm. The share price fell below Rs 50 per share on the National Stock Exchange, down 6.2% intra-day. This is after Rosmerta Digital Services initiated insolvency proceedings against OLA Electric Mobility’s wholly-owned subsidiary, Ola Electric Technologies, for non-payment of incurred services. Rosmerta initiates bankruptcy

Wipro plummets 13% in 2025: 4 key factors to watch amidst restructuring of global business

Wipro shares fell 0.9% to an intra-day low of Rs 261.70 after it realigned the global business with clients’ needs. The stock was among the major losers on Nifty and has lost 13% year to date. The restructuring in global business line comes amidst the US recessionary concerns and challenging macroeconomic conditions. Also, the company

Infosys has plunged 16% in 2025: 5 key factors investors need to know ahead of Q4 earnings

Infosys is back in the spotlight as investors keep a close watch on the IT giant following recent developments. From its upcoming quarterly earnings to stock performance trends, here are five key things to know about Infosys shares right now. Infosys: Quarterly earnings on the radar The countdown has begun for Infosys Q4 results. The