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Rapido Enters India’s Online Food Delivery Market with Lower Commission Strategy

India's food delivery market online is set to undergo a drastic shake-up. Rapido, the bike-taxi app service that has captured the imagination of the urban masses, is set to make a dramatic foray into the food delivery segment a space that the big boys, Swiggy and Zomato, now have cornered. With a new, competitive advantage built around reduced commission fees for restaurants, Rapido's entry may reorient the way food delivery apps work in the nation.

Rapido Food Delivey

Rapido Food Delivery App

What is unique to Rapido's food ordering business model is its cooperative business model with the National Restaurants Association of India (NRAI). As reported by The Economic Times, the company has signed a commercial agreement with the NRAI, who represent more than 500,000 restaurants in India. This collaboration demonstrates Rapido's intent to build a more level-playing field for restaurants, particularly serving smaller and independent restaurants who normally grapple with the steep commission fee offered by the current players.

NRAI President Sagar Daryani acknowledged that the association has been having active talks with Rapido for months, as it has been doing with the Open Network for Digital Commerce (ONDC). He reiterated that the association is working on a model which is not only economically sustainable, but also democratically so, with more control and transparency for restaurants and for relationships with customers.


Lower Commissions

Rapido is said to be pricing just 8–15% commissions on order value big difference from the 16–30% commission normally charged by Swiggy and Zomato. This sharp reduction in cost is set to bring aboard an enormous number of restaurants to the platform.


In addition, the firm is to roll out a fixed pricing scheme for consumers: ₹25 for orders worth less than ₹400 and ₹50 for orders worth more than ₹400. Such a system promises lower and more stable expenses for both restaurants and users, and could make Rapido a great choice for frugal customers as well as small food establishments.


Bengaluru to Witness the First Wave

Rapido intends to launch its food delivery business with a dry run in Bengaluru, set to start in late June or early July 2025. The pilot will enable the company to optimize logistics, gain insights, and scale operations depending on real-time performance. If successful, Rapido's model may soon be replicated in other metros and tier-2 cities, going head-to-head with Swiggy and Zomato on a nationwide level.


An executive familiar with the matter said, "This step will particularly benefit small restaurants, which have been long weighed down by the high commission of current platforms. Rapido's lower commission and democratic model provide them much-needed relief to flourish."


Not the First Ride on the Food Delivery Highway

Rapido's entry into food delivery is not entirely new to the Indian startup space. A number of ride-hailing aggregators have tried diversifying into this space, with varied success. Ola had entered Ola Cafe as far back as 2015 and went on to acquire Foodpanda India in 2017. Although it finally closed down its food delivery business, Ola has made a return to this space through the ONDC platform recently.


Likewise, Uber Eats launched in India in 2017 but couldn't gain any dominance. Uber finally dropped out of the Indian food delivery space, selling its operations to Zomato in 2020 — a transaction that granted Uber a 10% holding in Zomato.


With this background, the success of Rapido in the food delivery segment will be largely contingent on execution, user experience, restaurant support, and pricing strategy. Nevertheless, with its committed users in cities and the halo of quick and inexpensive service, Rapido might have the right ingredients to whip up a success story.


Rapido's Expanding Ecosystem

Rapido already has strong brand recognition in the urban mobility space. Its app already allows users access to a variety of services such as bike taxi, auto rides, shared autos, parcel delivery, economy and premium cabs. Integrating food delivery services makes Rapido a multi-vertical super app where customers can access transportation and food from one platform.


What makes it even more interesting is the company's unwavering emphasis on affordability, speed, and hyperlocal delivery, all of which are also the main pillars of a thriving food delivery business. Rapido's logistical acumen and extensive fleet network might provide it with a strategic edge in rapid and affordable food deliveries.


Rapido's foray into the Indian online food delivery market has all the hallmarks of a game-altering move. By charging lower commission fees, having fixed fees per customer, and having deeply entrenched restaurant relationships, the company is establishing itself as a serious alternative to current titans. Yes, there are challenges particularly in an industry where customer loyalty and operational effectiveness are of the essence but Rapido's approach is a sign of an emerging trend toward decentralized, restaurant-centric delivery models.

If the Bengaluru pilot is successful, we may be seeing the emergence of a new player in the food-tech war one that fights for fairness, affordability, and innovation.

Catch more updates on Rapido's expansion and all key happenings in India's tech and startup landscape at AndroBranch.

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