Rapido, known for its bike taxi services and supported by WestBridge Capital, is set to enter the food delivery market with a trial rollout in Bengaluru soon. The company is targeting collaborations with well-known quick-service restaurants, including Indian franchise holders of brands like McDonald’s, KFC, and Pizza Hut. Discussions are also underway with popular cloud kitchens and high-demand restaurant chains.
The initial rollout will prioritise deliveries from large food brands within a short radius — up to 5 kilometres — taking advantage of their dense outlet distribution across metro areas. These large chains are responsible for a substantial volume of orders, even as smaller restaurants contribute to the variety of options available to consumers.
In terms of market presence, Zomato reported around 306,000 monthly active restaurant partners for food delivery in the December 2024 quarter. Swiggy, which shares a common investor — Prosus — with Rapido, had about 243,400 in the same period. While both Zomato and Swiggy have average order values (AOVs) of approximately Rs 400 to Rs 450, they’ve also launched lower-cost options to attract price-sensitive customers. Rapido aims to tap into a segment of users whose AOV is closer to Rs 250 — a market that remains largely untapped by current players.
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Rapido’s business model will diverge from the conventional commission-based system used by Zomato and Swiggy. Instead of taking a percentage from each order, Rapido will charge restaurants a standard subscription fee for platform access along with a fixed delivery charge per order. This could ease financial pressure on restaurant partners, many of whom currently raise their menu prices on aggregator platforms to cover commission fees. Rapido’s approach might enable eateries to offer more competitive pricing to end customers.
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