Rapido to use three-tier delivery pricing for its food service
What's the story
Rapido, one of India's leading bike taxi services, is gearing up to enter the food delivery sector. The company plans to launch its new platform 'Ownly' in Bengaluru in mid-July. Unlike established players such as Zomato and Swiggy, Rapido will be adopting a flat three-tier delivery fee structure based on order value.
Pricing model
Orders above ₹400 will have a delivery fee of ₹50
The three-tier delivery fee structure proposed by Rapido is different from the commission-based models used by Zomato and Swiggy. For orders over ₹400, a delivery fee of ₹50 + 18% GST will be charged. This total cost of ₹59 will be borne entirely by restaurant partners. For orders between ₹100 and ₹400, the same fee structure applies, with restaurants covering the full cost of around ₹29.50 (₹25 + GST).
Cost-sharing
Orders below ₹100 will have shared delivery cost
For orders below ₹100, Rapido proposes a shared delivery cost. Customers will pay ₹23.60 (₹20 + GST) while restaurants will bear ₹11.80 (₹10 + GST), bringing Rapido's total delivery revenue from such small orders to ₹35.40. This model is different from industry standards, where companies like Zomato and Swiggy charge customers an additional platform fee of around ₹10 per order, which, with GST, totals about ₹11.80 beyond delivery fees and commissions.
Transparency pledge
Rapido won't charge restaurants any platform fees
Rapido has promised its restaurant partners that it won't charge any platform fees, unlike Zomato and Swiggy. The company's model also deviates from the commission-based structures adopted by incumbents who typically charge between 16% and 30% of the order value as commission. For example, on a ₹500 order on Zomato or Swiggy, restaurants may pay between ₹80 and ₹150, while Rapido's flat fee would be ₹59.
Market entry
Ownly's entry into food delivery space
The flat-rate system is designed to strike a balance between customer affordability and sustainable delivery margins. Rapido is also promising pricing parity with offline restaurants, aiming to attract diners with greater transparency. With its soft launch in Bengaluru slated for the coming weeks, Rapido's entry into the food delivery segment marks a new chapter in an industry dominated by two major players.