Analysts believe Rapido’s entry into food delivery is unlikely to disrupt the Zomato-Swiggy duopoly due to market complexities and established dominance.
Rapido is launching a new food delivery vertical called “Ownly” offering budget meals under ₹150 with zero-commission for restaurants.
The pilot project will start in Bengaluru by the end of this month with a minimum of four affordable meal options required from partner restaurants.
Rapido plans to leverage its fleet of 3 million and charge restaurants a low take rate of 8–15%, compared to 18–20% by Zomato and Swiggy.
Profitability remains a concern, as Bernstein notes Rapido’s model may not allow for reinvestment or scaling in its current form.
India’s food delivery market is highly fragmented, and only 10% of gross order value comes from organized quick-service restaurants.
Zomato and Swiggy have invested $2–3 billion in infrastructure and have over 300,000 monthly active restaurant partners combined.
Analysts estimate the current food delivery market is split 54% to Zomato and 46% to Swiggy, with Swiggy gaining recent momentum.
Rapido may find success in Tier 2 and 3 cities by onboarding underutilized restaurants, expanding the market rather than stealing share.
Despite Rapido’s commission-free promise, analysts predict it may need to raise take rates eventually to sustain operations.