You can now order food from Rapido in Bengaluru
What's the story
Rapido, a popular ride-hailing platform, has launched its food delivery service 'Ownly' in Bengaluru. The service is currently available in select areas including Koramangala, HSR Layout, and BTM Layout. Unlike other players like Zomato and Swiggy, which charge high commissions from restaurant partners, Rapido plans to keep its commission rates between 8-15%.
Business model
Fixed charge on orders
Along with the competitive commission rates, Rapido's food delivery service will also have a fixed charge on orders. The company will charge ₹25 for orders below ₹400 and ₹50 for those above this amount. This pricing strategy is part of Rapido's plan to take on established players like Zomato and Swiggy in the food delivery space, replicating its success in ride-hailing where it has challenged Uber and Ola's dominance.
Stake sale
Swiggy to sell its stake in Rapido
Notably, Swiggy, one of Rapido's investors, will now be a competitor in the food delivery space. The company has announced plans to sell its almost 12% minority stake in Rapido. "Rapido, one of our investee companies, has announced their intention to enter the food delivery space," Swiggy said in a letter to shareholders.