Rapido slashes food delivery commissions to half of Zomato, Swiggy
What's the story
In a major move to disrupt the food delivery market, ride-hailing app Rapido has announced its partnership with restaurants at nearly half the commission rates of industry giants Swiggy and Zomato.
The new terms were finalized in collaboration with the National Restaurants Association of India (NRAI).
As per these terms, Rapido will charge restaurants a commission between 8-15%, significantly lower than the 16-30% charged by Swiggy and Zomato.
Fee details
Rapido reveals fixed fee structure for food delivery service
Rapido has also revealed a fixed fee structure for its food delivery service.
The company will charge ₹25 on orders below ₹400 and ₹50 on those above this amount.
This new pricing model is expected to benefit smaller restaurants, which often struggle with high commission rates imposed by larger platforms like Zomato and Swiggy.
Pilot launch
Pilot project to go live by July
The pilot project for Rapido's food delivery service is expected to go live by the end of June or in the first week of July, starting from Bengaluru.
This comes after months of discussions between Rapido and NRAI, during which they explored a more sustainable structure for restaurants.
Current operations
Partnership with Swiggy
Currently, Rapido's bike-taxi riders have a non-exclusive 'idle-time' arrangement with Swiggy to deliver food in select cities.
The NRAI, which represents over 500,000 restaurants, had also started a similar partnership with government-backed ONDC in January.