Rapido is entering food delivery business to rival Zomato, Swiggy
What's the story
Rapido, one of the leading bike taxi services, is gearing up to launch a pilot project for its food delivery service in Bengaluru.
The company is said to be in talks with major restaurant chains such as McDonald's, KFC, and Pizza Hut.
The first phase of this project will target larger restaurant chains for short-distance deliveries within the city.
Delivery strategy
Focus on high-density restaurant chains
Rapido's strategy is to deliver from high-density restaurant chains in top cities. This way, it can deliver as far as 5km, serving a large chunk of orders from these big chains.
The company also plans to tie-up with quick service restaurants and cloud kitchen chains that see high order frequency, giving consumers a wider choice.
Business model
Rapido's unique subscription model for food delivery
Backed by WestBridge Capital, Rapido is also going for a subscription-based model for its food delivery service.
This means it will charge restaurants a fixed periodic fee for access to the platform and a per-order delivery fee.
This is different from the commission-based structure being followed by leading players Zomato and Swiggy.
Expansion
Rapido's growth and future plans
Rapido, which raised $200 million in September 2024, is now eyeing food delivery and insurance distribution as new growth areas.
The company has already crossed over $1 billion in gross merchandise value last fiscal year.
Despite the slowing growth of the food delivery segment—Zomato and Swiggy's main revenue source—Rapido remains optimistic about its expansion into this market.