Rapido’s “Ownly” Bid: Aiming to Break the Food Delivery Duopoly with Affordable Meals

Rapido, known for its bike taxi services, is stepping into the food delivery sector with a new pilot initiative called “Ownly,” launching soon in Bengaluru.

The company’s mission is clear: “Every person should have the luxury of choice and the ability to order a reasonably priced meal.” Rapido seeks to challenge the dominant players, Zomato and Swiggy, with a pricing model focused on affordability and fairness.

Introducing “Ownly”: Rapido’s New Offering

According to a pitch reviewed by Moneycontrol, Rapido is branding its food delivery business as “Ownly.”

While the name might change later, the core objective remains the same: delivering meals at a fair price. Rapido is entering a market where Zomato and Swiggy together complete more than 4.5 million orders daily and control 95 percent of an $8 billion industry.

However, Rapido’s scale provides a solid foundation. The company facilitates 4 million rides across 500 cities and boasts 30 million monthly active users.

Addressing Industry Challenges

Restaurant owners have long criticized Zomato and Swiggy for high commissions, preferential treatment, and rising customer acquisition costs.

Some alternative platforms like Thrive failed to scale, while others such as ONDC, Magicpin, Zepto Café, and Swish have yet to make a significant impact.

Rapido’s entry is different. The company emphasizes parity between offline and online pricing. “We will only be looking to work with partners who can commit to this stand of honest pricing,” the proposal reads.

Zero Commission and Transparent Pricing

The company plans to remove additional charges like packaging costs and marketing expenses. It also promises zero commission on food delivery, a significant change from the current models.

“The price of a dish (excluding GST) is the final price the customer pays. There is no other addition from us or a restaurant partner. Offline price = Online price,” the pitch stated.

Customers will pay only a delivery fee: ₹25 plus GST for orders above ₹100 and ₹20 for those below ₹100, all within a 4-kilometre range. These charges will be absorbed by the restaurant partners, not passed on to customers.

Structural Simplicity for Better Affordability

Unlike Zomato and Swiggy, which include multiple charges such as platform fees and packaging costs, Rapido aims to simplify pricing. With minimal cost layers and restaurants bearing the delivery charges, the platform allows them to offer better prices.

The company also mandates that partners list at least four meals priced at ₹150 or less, making online food more accessible for a larger customer base.

Revenue Plans and Long-Term Goals

Though Rapido’s initial model seems generous, it still needs to manage its monthly burn rate of around $5 million.

The company plans to sustain itself by eventually introducing a flat subscription fee for restaurant partners while maintaining its zero-commission stance.

This mirrors Rapido’s ride-hailing model and relies on high volume and low cost. “Think of us as a low cost platform that is looking to get you a large number of new customers,” the company explained.

Restaurant Collaboration and Ad Options

Restaurants will also have opportunities to advertise on Rapido’s platform and receive customer data to enhance their marketing campaigns, adding another layer to Rapido’s revenue strategy.

A Rapido spokesperson confirmed the initiative, stating, “We are currently test piloting an online food delivery app in the city of Bengaluru… We’ll share more details on our plans as we move forward.”

Pilot Launch and NRAI Support

The pilot will begin by late June or early July in select Bengaluru areas. Rapido has partnered non-exclusively with the National Restaurant Association of India (NRAI), which represents over 50,000 restaurants nationwide.

Unlike other platforms that failed due to lack of control over last-mile logistics, Rapido will use its existing 4 million-strong rider base. The company plans to use idle rider hours for deliveries, keeping operational costs low while boosting rider earnings.

Lower Commissions and Logistical Edge

Rapido is expected to charge restaurant partners between 8–15 percent commission based on average order value—much lower than Zomato and Swiggy’s 21–22 percent. Its rider base significantly outnumbers that of Zomato (0.44 million) and Swiggy (0.53 million).

Rapido also plans to integrate food, parcel, and ride delivery into a single captain’s app, using algorithms to optimize earnings and delivery efficiency.

Potential Market Impact

According to Elara Capital, Rapido could disrupt the current food delivery market structure. Swiggy and Zomato are aiming for 5 percent adjusted EBITDA margins.

However, a rapid scale-up by Rapido, especially with heavy subsidies, could provoke a pricing war and affect profitability across the industry.

Zomato, for instance, spent $400 million on advertising between FY20 and FY22 to reach its current scale. In contrast, Rapido might bypass heavy ad spending by leveraging its existing user base and logistics.

Market Reaction and Risks

Zomato’s shares have dropped by 2 percent and Swiggy’s by over 4 percent in recent days. Elara warns that if Rapido gains traction, it could lead to a 6–12 percent decline in Zomato’s share price in bearish scenarios.

However, Rapido also faces challenges. It lacks the real-time fulfillment models of Swiggy and Zomato, which may affect delivery speed and service quality.

Swiggy’s BOLT and Zomato’s Quick are built for instant deliveries, a feature Rapido will need to match to remain competitive.