India's food delivery landscape is in for a shake-up. Rapido, best known for its bike taxi operations, is entering further into the food delivery business, and its disruptive pricing is making waves. The company has sealed new terms of partnership with restaurants that could be a serious threat to the duopoly of Zomato and Swiggy.
According to insiders, Rapido will levy a commission of 8-15% from restaurant partners, almost half the 16-30% commission that Zomato and Swiggy typically take. This revolutionary step is likely to bring relief to small and medium-sized restaurants that have been complaining for long about the high charges by the big boys.
As per the terms agreed with the National Restaurants Association of India (NRAI), Rapido also charges a flat delivery fee of Rs 25 for orders up to Rs 400 and Rs 50 for orders over Rs 400. This open pricing policy means restaurants won't be caught off guard by surprise charges or unauthorized expenses — a running grouse against Zomato and Swiggy.
"This will particularly benefit small restaurants," said an executive with knowledge of the development. The pilot rollout is anticipated to come in Bengaluru in late June or early July. Rapido currently employs its fleet of bike taxis to drive food for Swiggy at an occasional basis, but the move represents a serious, standalone entry into the food delivery space.
Restaurant business owners in India, particularly small players, have expressed themselves on the crushing fees of large food ordering apps. Vandit Malik, an owner of The Garlic Bread, recently complained on LinkedIn about paying more than Rs 30 per order on advertising alone just to remain even visible on these apps. Another small restaurant from NCR, Saffroma, even publicly left Zomato due to suspected unfair practices.
Read more: ₹1 lakh to ₹80 cr: How forgotten JSW shares made this Redditor a crorepati
While ONDC also promised restaurants a different platform, its slow pace of adoption has created a vacuum in the market. Rapido's aggresive pricing and roll-out plans might just provide the succour restaurant owners have long been clamouring for. Bengaluru is now eagerly watching if this model can shake up India's food delivery market.
