Rapido, known for its bike-taxi services, is preparing to enter India’s competitive online food delivery market, aiming to challenge established players like Swiggy and Zomato.
The company plans to disrupt the existing model by offering significantly lower commission rates to restaurants which is between 8% and 15%, compared to the 16–30% typically charged by its competitors.
Rapido has already reached a partnership deal with the National Restaurants Association of India (NRAI), which represents over 500,000 food establishments. The deal is expected to particularly benefit smaller restaurants that often struggle with high commission fees. A pilot program is set to begin in Bengaluru by late June or early July.
In addition to the commission model, Rapido will reportedly implement a fixed delivery fee: ₹25 for orders below ₹400 and ₹50 for those above ₹400. This structure is designed to provide greater pricing transparency while supporting both consumers and food vendors.
Sagar Daryani, President of the NRAI, stated that discussions with Rapido have been ongoing for several months.
He emphasized the need for a sustainable and economically viable alternative for restaurants, adding that the platform’s customer data transparency is also a key feature being discussed.
Rapido is not the first to try and rival the food delivery giants. Ola and Uber previously launched food delivery ventures, with Uber Eats eventually exiting after being acquired by Zomato.
However, Rapido’s strategic pricing and its diverse existing services like bike taxis, auto rides, parcel delivery, and cab options could give it an advantage in reaching a wide user base.
