Rapido to Introduce Food Delivery Service with low Commissions to Restaurants
The food delivery business in India is about to receive a disruption, owing to the official entry of Rapido, the well-known bike taxi company, into the food delivery market. The strategic step is called the food delivery launch, and it is considered as the time when both restaurants as well as consumers are trying to find options to the current duopoly of Zomato Swiggy.
Lower commissions and a partner-first philosophy are the promises of Rapido, and it is bound to disrupt the India food delivery market 2025.
Rapido Food Delivery Launch: All We Know So Far
Its introduction of Rapido food delivery is being marketed as a challenger brand to the incumbent giants, Zomato and Swiggy, which have hitherto dominated the food tech category in India. The announcement of Rapido has created a buzz because of the alleged restaurant commission percentage of approximately 10%-15 %, which is substantially lower than the 25%-30 % commission applicable by Zomato and Swiggy. This low Rapido restaurant commission rate will likely appeal greatly to the small and medium restaurants who are operating on wafer-thin profit margins.
With an established network of two-wheeler drivers and a vast network in Tier I and Tier II cities, Rapido will focus on optimising the logistics and provide faster deliveries at a low overhead cost.
Rapido vs Zomato Swiggy: The Battle Begins
The Rapido vs Zomato Swiggy comparison is inevitable. Whereas Zomato and Swiggy have taken years to establish their ecosystem, consumer base, and AI-powered logistics, Rapido has a different ace up its sleeves, cost-efficiency, and hyperlocal mobility.
Unlike its competitors, Rapido isn’t starting from scratch. It has a large network of two-wheelers and a ready customer base through the ride-hailing app that may offer it a fast route to scale. Provided that the service offered by lives up to the expectations in terms of the quality, reliability, and price, it will be a significant threat to the current participants of the India food delivery market 2025.
Why Rapido Might Succeed Where Others Have Failed
In India, numerous food delivery companies have entered the market with much fanfare only to disappear within a year or two. The question everybody is asking: why food delivery startups fail in India?
Here are a few key reasons:
- High burn rates due to heavy discounts and promotions
- Unsustainable commission models impacting restaurant partners
- Poor unit economics with high customer acquisition costs
- Inconsistent delivery service quality
The differentiating factor of Rapido is its capital-light business model and a network of drivers, which means that it can potentially acquire customers and logistics at a lower cost. In addition, its specialization in restaurant-friendly commission plans might guarantee improved onboarding and satisfaction of merchants.
Rapido Funding and Expansion Strategy
Rapido funding has been robust, given the presence of large investors, such as Westbridge Capital, Shell Ventures, and Nexus Venture Partners. The company is seeking another round to grow the food delivery business as per industry reports.
This new funding will probably be utilized in the expansion to additional cities, advertising and marketing campaigns, the addition of restaurants, and the enhancement of the platform to manage and track orders.
An important benefit this is–with strong Rapido funding at the outset, the odds of an untimely closure are minimized, as has been the bane of the previous food delivery startups in India.
Impact on Restaurants and Consumers
Restaurants are welcoming the move with optimism. They have long complained that they are being stressed by the high commission rates charged by Zomato Swiggy. The restaurant commission fee of Rapido will offer a more fair partnership that can result in better margins and business sustainability.
On the positive side, consumers could enjoy better prices in terms of competition, faster deliveries and better service as a result of increased market competition.
Provided that manages to keep the quality of its services and capacity to grow effectively, it might become the third key player in the Indian online food delivery market.
India Food Delivery Market 2025: A Booming Battlefield
As the online food delivery market in India is projected to be worth more than USD 24 billion by 2025, several participants can co-exist. India food delivery market 2025 will be defined by:
- Tier II & III city penetration
- Sustainable unit economics
- Tech-driven delivery optimization
- Flexible commission models
Rapido food delivery launch seems to be in accordance with these trends, therefore, it is a strategically correct entry.
Conclusion
The entry of Rapido into the food delivery business is not another start up experiment but a well-calculated move expansionism on the basis of available infrastructure, brand trust, and market gaps. With commissioned reduced restaurant rates, the business can turn into a lighthouse to thousands of restaurants in India seeking a more reasonable option to Zomato and Swiggy.
Only time will how Rapido goes at scale without compromising on service quality but initial indicators point to a potential new entrant in the dynamic India food delivery market 2025.
