Rapido Cuts Delivery Fees to Challenge Zomato & Swiggy

Prime Highlights:

Rapido to provide restaurants with food delivery services at commission prices 50% less than Swiggy and Zomato.
The platform will be rolled out in Bengaluru, focusing on small and medium-sized restaurants.

Key Points:

Rapido’s commission will vary from 8% to 15%, unlike Zomato and Swiggy’s 16% to 30%.
Restaurants will pay ₹25 per order below ₹400 and ₹50 per order above ₹400.
Service launch has been anticipated for late June or early July.

Key Background :

Rapido, a popular Bengaluru-based bike-taxi service, is entering the food delivery space with a strong push by providing much lower commission rates to restaurant partners. This is a strategic push meant to break the duopoly of Zomato and Swiggy, which currently rule India’s online food delivery space.

As per reports from people close to the development, Rapido will levy 8% to 15% commissions on restaurants — almost half the price that Zomato and Swiggy are levying presently. These range normally between 16% and as much as 30%, which has been an issue of concern for small and medium-scale restaurant operators for a long time.

To make it easy to price, Rapido will charge a flat delivery charge: ₹25 for orders up to ₹400 and ₹50 for orders over that. This clarity is likely to tempt restaurants who have felt annoyed with the secret charges and excessive rates of existing market leaders. Rapido will launch in Bengaluru, its headquarters, with plans for rollout in late June or early July.

Rapido is utilising its existing fleet of bike riders for the delivery business, enabling rapid onboarding and economical logistics. The company has already inked a deal with the National Restaurants Association of India (NRAI), which has been proactively looking for alternative delivery solutions in order to provide better terms to its members.

Several restaurant owners have complained against Zomato and Swiggy about too much in the form of commission, compulsive advertisement expenditure, and transparency. Some have even opted to quit these platforms because of lower profitability or unfavorable terms. Rapido’s strategy would be the welcome choice, particularly for local and independent restaurants who would like to keep their margins as well as customer relations.

Even though Swiggy is an investor in Rapido, the bike-taxi company has complete operational autonomy and is starting this food delivery service on its own. Rapido had already been doing informal food delivery for some restaurants and on occasion had collaborated with Swiggy for last-mile delivery.

Now, with a proper launch and competitively priced, Rapido plans to be a robust third force in the food delivery business, offering both restaurants and consumers a transparent and cost-effective platform.