You can order food from Rapido starting next week
What's the story
Rapido, a major player in the ride-hailing industry, is gearing up to launch its food delivery service 'Ownly' in Bengaluru. The pilot will begin within the next 8-10 days and will initially cover areas like Koramangala, HSR Layout, and Sarjapur. The company plans to expand this service to 10 cities over the next year.
Growth strategy
Focus on Bengaluru for next few months
The decision to start with a smaller pilot instead of a larger launch was taken to gather more insights. The initial focus will be on Bengaluru for two to three months, followed by expansion into two or three more cities by September-October. The goal is to reach 10 cities by next July.
Market competition
Rapido plans to charge lower commissions from restaurants
Rapido plans to take on food delivery giants Zomato and Swiggy by charging lower commissions from restaurants. The company is likely to charge between 8-15% as commission, much lower than the 16-30% charged by its competitors. It is also working on an MoU with restaurant associations to define mutual expectations ahead of the launch.
Data access
What are restaurants demanding?
Restaurants are demanding access to customer data, a request they have made unsuccessfully with Zomato and Swiggy. In return, Rapido is asking eateries to offer the lowest cart-level pricing on Ownly across platforms, while avoiding high packaging costs. The company has also asked restaurants to list four to five menu items below ₹150 on its food delivery app.