Why Magicpin and Rapido have joined forces in India
What's the story
Magicpin and Rapido have teamed up to take on the food delivery duopoly of Zomato and Swiggy in India. The partnership will see Magicpin's extensive restaurant network integrated into Rapido's Ownly platform. The collaboration comes as part of Rapido's expansion efforts beyond Bengaluru, where it launched the Ownly service in August.
Expansion plans
Partnership to provide access to over 80,000 restaurants
Once the integration is complete, Rapido's Ownly will get access to over 80,000 restaurants across India. Meanwhile, Magicpin will leverage Rapido's delivery fleet in select locations. A Rapido spokesperson said that while they primarily onboard restaurants directly through their merchant team, they also work with partners like Magicpin in select cities as a logistics provider for last-mile deliveries.
Market hurdles
Challenges ahead for Magicpin-Rapido alliance
Despite the potential disruption, the Magicpin-Rapido partnership has a long way to go. Food delivery is a tough, low-margin business where balancing rider payouts, delivery costs, as well as customer discounts can be challenging. The duo also needs to strengthen ties with brands and restaurants who already have their hands full with multiple delivery platforms.
Trust issues
Consumer trust and brand loyalty: New challenges
Building consumer trust is another hurdle for the new partnership. Zomato and Swiggy have built deep brand loyalty over years of reliability and speed. The Magicpin-Rapido alliance will have to match or exceed these benchmarks to win over consumers. Restaurant chain owners are optimistic about the tie-up, with Empire Hotels & Restaurants CEO Shakir Haq saying it opens up more avenues for restaurants to explore new customers.