Rapido is set to enter the food delivery segment with the launch of its new platform, ‘Ownly’, scheduled for a mid-July rollout in Bengaluru. With this move, Rapido aims to challenge incumbents Zomato and Swiggy by introducing a transparent and cost-effective delivery fee structure that significantly diverges from prevailing industry models.
Unlike the traditional commission-based structures adopted by existing players, Rapido’s three-tier flat delivery fee model is designed to offer greater clarity and affordability to both restaurants and consumers.
Under this model:
- For orders above Rs. 400, a flat delivery fee of Rs. 50 plus 18% GST (total Rs. 59) will be charged, fully borne by the restaurant.
- For orders between Rs. 100 and Rs. 400, a fee of Rs. 25 plus GST (total Rs. 29.50) will apply, again paid entirely by the restaurant.
- For orders below Rs. 100, Rapido proposes a shared cost structure, where customers will pay Rs. 23.60 (Rs. 20 + GST) and restaurants will contribute Rs. 11.80 (Rs. 10 + GST), resulting in total delivery revenue of Rs. 35.40 per order for Rapido.
In a significant departure from the norm, Rapido has committed to not charging restaurants any platform fees, a stark contrast to Zomato and Swiggy, which typically charge commissions ranging from 16% to 30% of the order value. For instance, a Rs. 500 order on these platforms could cost restaurants between Rs. 80 and Rs. 150, whereas Rapido’s flat charge would be limited to Rs. 59.
Additionally, Rapido has pledged pricing parity with offline restaurant menus, aiming to build customer trust and improve transparency in the online food ordering experience.
With its soft launch in Bengaluru imminent, Rapido’s entry into the food delivery space signals a bold step into a highly competitive sector, as the company looks to leverage its existing mobility network to offer sustainable, partner-friendly solutions.
