Rapido To Take On Swiggy, Zomato In Food Delivery Segment

Ride-hailing startup Rapido is reportedly in discussions with restaurant partners to add food delivery services on its platform.

The Bengaluru-based startup’s senior executives are in discussions with restaurant owners to figure out a business model to challenge the current commission structures of Zomato and Swiggy, ET reported, citing sources.

“These are early discussions to determine if Rapido can challenge the Zomato-Swiggy duopoly. The company already offers delivery services for individual restaurants using its two-wheeler fleet,” a source was quoted as saying. 

However, the food delivery foray has not been finalised yet.

Inc42 has reached out to Rapido for comments on the development. The story will be updated on receiving a response.

While Zomato and Swiggy currently dominate the food delivery market, restaurants have in the past protested against the commissions charged by these companies. Amid the slowing growth in food delivery, both the companies have also rolled out 10-15 minutes food delivery services. 

Meanwhile, in a bid to shore up their bottom lines, the companies have hiked platform fees multiple times in the past year. 

Meanwhile, after grabbing a share in the ride-hailing segment, Rapido seems to be looking to expand its services to grow its top line. It plans to expand its footprint to 500 cities across the country from 120 currently.

In September last year, it was reported that the startup was eyeing entry in the quick commerce space.

It is pertinent to mention that Rapido’s B2B logistics arm offers food delivery services to Swiggy and the Open Network for Digital Commerce (ONDC). Swiggy is also an investor in Rapido.

Last month, Inc42 also reported that Rapido is raising INR 250 Cr (about $28.9 Mn) from Prosus as part of its ongoing Series E round.