Ride-hailing giant Rapido might soon deliver food in India
What's the story
Rapido, a leading player in the ride-hailing space, is reportedly eyeing the food delivery segment. The company is planning to add this new service on its platform, according to The Economic Times. Senior executives from Rapido have been talking to restaurant owners over a business model that could potentially disrupt the current commission-based model of top food delivery services like Zomato and Swiggy.
Collaboration
Current involvement in food delivery
Reportdely, Rapido is already delivering food for standalone restaurants with its fleet of two-wheelers. The company also delivers food on behalf of Swiggy, which is an investor in Rapido. Notably, there is no exclusivity clause associated with Swiggy's investment that might hinder Rapido's potential entry into the food delivery business.
Expansion
Rapido's market position
Rapido's co-founder Pavan Guntupalli recently revealed the company's ambitious growth plans. He said that Rapido plans to expand its services to 500 cities across India by the end of this year. Guntupalli also emphasized Rapido's strong market position, saying, "We are seeing strong growth. We have already turned market leaders in the two-wheeler industry and the three-wheeler industry."
Financial success
Financial growth and future prospects
The company's move to enter the food delivery space comes after it crossed $1 billion in annualized gross merchandise value (GMV) from its ride-hailing services. Rapido also raised around $30 million from Dutch investor Prosus in February 2025, strengthening its financial position.
Industry dynamics
Market challenges and competition
The food delivery industry is already grappling with slowing growth and commission rate disputes between restaurants and aggregators. However, Zomato dominates the market with a 57.1% market share, brokerage firm Bernstein said. The entry of new players such as Zepto, Zomato-owned Blinkit, and Accel-backed Swish into the 10-minute food delivery segment shows growing competition in the space.