Ride-hailing platform Rapido is likely to begin a pilot its food delivery service ‘Ownly’ in Bengaluru next week, according to a report published by The Economic Times. The start-up will roll out the new offering in various locations, including Koramangala, HSR, and Sarjapur.
The new-age company aims to expand the service to 10 cities within the next year. With Ownly, Rapido is looking to take on market giants Zomato and Swiggy. It plans to build on its success in shaking up the Uber-Ola dominance in ride-hailing space.
Rapido is backed by investors like Prosus, Nexus Venture Partners, and WestBridge Capital. It aims to attract restaurants with a commission rate of 8-15%, significantly lower than Zomato and Swiggy which charges nearly 16-30% commission.
Currently, the start-up is formalising a memorandum of understanding (MoU) with restaurant associations, the report added. Rapido has asked partner restaurants to list 4-5 dishes under ₹150 as it gears up to introduce a budget-friendly sub-₹150 category on its soon-to-launch food delivery platform.
It is pertinent to mention that Swiggy, an investor in Rapido, has also rolled out a ₹99 store on is food delivery platform. Even Prosus is also a common investor in Swiggy and Rapido.
Swiggy’s 99 Store Bet
Food delivery major Swiggy has announced the launch of affordable range of offerings on its app called ’99 Store’. The initiative aims at making everyday meals more affordable and accessible. The feature is available to users across 175 cities, including Bengaluru, Ahmedabad, Kolkata, Hyderabad, Delhi, Pune, Chennai, Patna, Surat, Bhopal, etc.
The 99 Store is a place for quick-prep dishes offered at a flat price point of ₹99. These curated dishes come with free delivery on all orders under the ‘Eco Saver’ delivery mode, the company said in its official statement. The move came just a week ahead of Rapido’s pilot launch of its food delivery platform in Bengaluru.
“The 99 Store is our way of making sure daily meals don’t burn a hole in your wallet. We’ve worked closely with our restaurant partners and delivery teams to make everyday meals more affordable without cutting corners. This is a big step in making Swiggy a true everyday choice for millions,” said Rohit Kapoor, CEO, Swiggy, Food Marketplace.
The food delivery space has recently turned into a hotbed of action, with new challengers like Rapido entering the market with an aim to shake up the long-standing duopoly. Since Rapido’s announcement, there has been speculation over its possible impact on the Swiggy-Zomato duo.
However, industry experts have expressed mixed views on the development; with some saying Rapido’s entry is unlikely to disrupt the Zomato-Swiggy duopoly, while others believe that Rapido has also brought disruption in the ride-hailing space.
