Rapido, a well-known ride-hailing entity in India, has embarked on a new venture by soft-launching its food delivery service. This strategic expansion signals the company's ambition to carve out a share in the competitive Indian food delivery landscape, currently dominated by industry giants like Swiggy and Zomato. The move is currently in its trial phase, focusing on key localities within Bengaluru, a vibrant tech and commercial hub.
The company, celebrated for its ride-hailing services, particularly its widespread network of two-wheelers, is now channeling this logistical prowess into food delivery. This shift represents a significant diversification for Rapido, building upon its established base in transport and logistics. The new service operates under a distinct subsidiary named Ctrlx Technologies, which has launched a dedicated application called Ownly.
A critical aspect of Rapido's strategy to disrupt the market is its innovative pricing model. Unlike the prevalent commission-based system employed by its competitors, which can see restaurants forfeiting up to 30% of their earnings, Rapido's Ownly proposes a fixed fee per order. This approach is designed to offer a more financially attractive alternative for restaurants, potentially translating into lower prices for consumers and thereby drawing a larger customer base. This model aims to foster a more equitable partnership with food establishments, contrasting with the high commission rates that have often been a point of contention for restaurants on other platforms.
Rapido's deep understanding of local market dynamics and operational efficiency stems from its decade-long experience in the ride-hailing sector. This includes valuable insights gained from previous collaborations, such as handling deliveries for Swiggy. This prior engagement has equipped Rapido with critical data on peak demand periods and popular eateries, which it now intends to utilize for optimizing its own food delivery operations. The company's extensive fleet of around 10 million vehicles across India provides a robust infrastructure for this new endeavor, allowing for swift and cost-effective deliveries.
Furthermore, Rapido’s expansion into food delivery follows a period of notable growth and diversification. Having already expanded from bike taxis to auto-rickshaws, parcel delivery, and even into the cab business to contend with Uber and Ola, Rapido has consistently demonstrated its capacity for strategic evolution. Its subscription-based model in the cab sector, a departure from the commission-centric models of rivals, helped it achieve unicorn status last year, underscoring its innovative approach to market entry and competition. The Indian online food delivery market is on a trajectory for substantial growth, projected to reach approximately $23 billion by 2030, presenting a lucrative opportunity for Rapido's new service.
This foray into food delivery marks a significant chapter for Rapido, showcasing its commitment to expanding its service offerings and challenging the existing duopoly in India's booming online food market. By leveraging its extensive logistical network and adopting a restaurant-friendly pricing strategy, Rapido is poised to become a formidable competitor, potentially reshaping the dynamics of food delivery in the region.
