Rapido, previously India’s leading bike-taxi app, is now set to shake up the food delivery industry. In a bold strategic move, the company plans to undercut Swiggy and Zomato by offering food delivery services with 50% lower commissions to restaurants
This means restaurant partners will pay significantly less than the 25–35% fees charged by existing platforms, making Rapido a disruptive entrant in the online food ecosystem.
📍 2. Early Talks with Restaurants Across Cities
Rapido has initiated discussions with restaurants and associations in four major metro areas to define its delivery model. Plans include offering:
- Reduced commission rates compared to industry standards
- A subscription-based SaaS model, where restaurants may pay a flat monthly fee instead of a percentage per order
This dual approach gives restaurants flexibility—either pay less per order or use Rapido’s tech and delivery fleet for a fixed cost.
👥 3. Why Rapido Is Well Positioned
- 🚲 Extensive two-wheeler fleet: Rapido already handles ride-hailing and partner deliveries for Swiggy in many cities
- 🎯 Hyperlocal reach: With operations in over 100 cities and intent to expand to 500, Rapido can offer quick, localized delivery
- 💡 Fresh tech model: Their commission and subscription structures for drivers show Rapido already has experience with alternative revenue models
💬 4. Benefits for Restaurants & Users
| Stakeholder | Advantages |
|---|---|
| Restaurants | Reduced fees boost profitability and free budget for better offerings |
| Consumers | Lower delivery and food costs due to reduced commissions |
| Rapido | Gains a foothold in quick commerce, diversifying its business |
Smaller eateries, in particular, stand to gain—many struggle under the weight of high commissions
Challenges Ahead & Competitive Response
Rapido will need to tackle:
- Logistics infrastructure scaling to maintain fast delivery under a new model
- Competitive promotion and customer acquisition, to attract both restaurants and users
- Pushback from incumbents and restaurant bodies, like NRAI, wary of private-label services
Market veterans like Zomato and Swiggy, who hold nearly 95% of the market, could counter with loyalty programs, faster delivery options, or lower fees
Broader Implications for the Sector
- This move empowers restaurants to negotiate better terms or join new platforms
- Customers could enjoy a wider range of pricing and faster, low-cost delivery options
- New players like Rapido and ONDC-powered services may chip away at the Swiggy-Zomato duopoly
✅ Final Take
Rapido’s food delivery plan—offering 50% lower commissions and flexible subscription pricing—is a bold challenge to the status quo. If executed well, it could democratize online food delivery, benefiting restaurants and consumers while accelerating the shake-up of India’s delivery market.
Let me know if you’d like a breakdown of the business model details, competitive responses, or a graphics mockup to visualize Rapido’s pricing advantage.
