Rapido Engages with Restaurants to Develop Food Delivery Model

Rapido, a ride-hailing platform, is considering expanding into food delivery, positioning itself as a competitor to Zomato and Swiggy. According to a report, the company is in talks with restaurant owners to introduce food delivery services, aiming to offer a different commission structure compared to the existing market leaders.

Senior executives at Rapido have been engaging with restaurateurs to develop a competitive business model. However, these discussions are still in the early stages, and no final decisions have been made.

Rapido already facilitates deliveries for individual restaurants using its two-wheeler fleet and also provides delivery services for Swiggy, which is an investor in the company. However, Swiggy’s investment does not include an exclusivity clause, allowing Rapido the flexibility to expand its offerings.

Since launching as a bike-taxi platform in 2015, Rapido has grown into India’s second-largest ride-hailing service. The company has surpassed $1 billion in annualized gross merchandise value (GMV) from ride-hailing operations and currently operates in over 100 cities. It aims to expand to 500 cities across India this year. In February, Rapido secured $30 million from Dutch investor Prosus as an extension of a $200 million funding round led by WestBridge Capital last year.

Rapido’s potential move into food delivery comes as the sector faces challenges, including slowing growth and ongoing disputes over commission rates between restaurants and aggregators. Zomato’s CEO, Deepinder Goyal, has acknowledged structural issues within the industry that have contributed to this slowdown. Despite these challenges, Zomato holds a 57.1 percent market share, according to brokerage firm Bernstein, while Swiggy remains a key competitor.

The food delivery sector has also seen an influx of new players, particularly in the rapid delivery space. Platforms like Zepto, Zomato-owned Blinkit, and Accel-backed Swish have entered the market, focusing on 10-minute food delivery. However, this model has faced resistance from restaurant associations such as the National Restaurants Association of India (NRAI), which has been advocating for an alternative to the Zomato-Swiggy duopoly.

Rapido’s entry into the food delivery segment aligns with its broader strategy to diversify its services and increase revenue. By leveraging its existing two-wheeler fleet, the company aims to expand into hyperlocal deliveries and capitalize on the growing demand for quick commerce solutions.