Rapido brings Ownly to main app, expands zero-commission food delivery
What's the story
Rapido, a leading ride-hailing company in India, has integrated its zero-commission food delivery platform Ownly into its main app. The move is aimed at disrupting India's food delivery market. Now, users in Bengaluru can order food while booking bike taxis, autos, and cabs on the same platform. The integration significantly expands Ownly's reach by making it available to Rapido's monthly active users.
Business model
Ownly's zero-commission model
Launched earlier this year, Ownly operates on a zero-commission model. This means restaurants keep the entire order value while consumers pay transparent menu prices without platform markups.
Instead of commissions, restaurants only pay a fixed subscription fee to be listed on the platform.
Now, with Ownly integrated into its main app, Rapido hopes to tap into a much larger customer base and convert mobility users into food delivery customers.
Cost efficiency
Optimizing logistics for food delivery
Rapido plans to use its existing logistics network to improve the economics of food delivery.
By using the same rider fleet for both mobility and food delivery, the company hopes to reduce logistics costs and improve rider utilization during off-peak hours.
This integration is a key part of Rapido's food delivery strategy after it officially launched Ownly across Bengaluru earlier this year.
Market competition
Intensifying competition in India's food delivery market
Rapido's entry into the food delivery space comes as competition in India's market heats up.
Zomato and Swiggy continue to dominate, while newer players like ONDC and Magicpin have tried to challenge the duopoly with lower costs for restaurants.
However, scaling a sustainable marketplace while keeping prices low has been a major hurdle for these challengers.
Growth strategy
The road ahead for Rapido
By integrating Ownly into its main app, Rapido expects to lower customer acquisition costs by cross-selling food delivery services to its existing mobility users.
The move is also likely to boost engagement on the platform beyond ride-hailing services.
However, whether this strategy will help Rapido capture a significant market share against established players will depend on its ability to onboard restaurants, ensure reliable deliveries, and scale beyond Bengaluru.