Rapido’s food delivery platform Ownly has begun testing a 25% discount program in Bengaluru, marking a significant shift from its original promise of avoiding discounts in favor of transparent everyday pricing. The pilot represents a strategic pivot as the company accelerates customer acquisition ahead of its planned expansion into Pune and prepares for a potential initial public offering (IPO).
The move also comes with a higher price tag. According to industry sources, the discount pilot has increased Ownly’s cash burn to around ₹140 per order, highlighting the financial challenges of competing in India’s fiercely contested food delivery market, where established players Zomato and Swiggy have long relied on aggressive promotional offers to attract and retain customers.
Ownly Moves Away From Its No-Discount Philosophy
When Rapido launched Ownly earlier this year, the platform positioned itself as a restaurant-friendly alternative to traditional food delivery apps. Instead of attracting customers through discounts, Ownly promised transparent pricing, zero commissions for restaurants, and menu prices that closely matched offline rates.
The company argued that eliminating commissions and hidden platform charges would naturally allow restaurants to offer lower prices without depending on frequent promotional campaigns.
However, the introduction of a 25% discount pilot suggests Rapido is adapting its strategy after recognizing that discounts remain a key driver of customer acquisition and order frequency in India’s online food delivery market.
Discount Pilot Raises Customer Acquisition Costs
The Bengaluru pilot has reportedly pushed Ownly’s cash burn to approximately ₹140 per delivery, reflecting the substantial cost involved in subsidizing customer orders while scaling the platform.
| Metric | Reported Figure |
|---|---|
| Discount offered | 25% |
| Estimated cash burn per order | ₹140 |
| Pilot location | Bengaluru |
| Next expansion target | Pune |
Although the increased spending is expected to weigh on short-term profitability, industry observers view it as a calculated investment aimed at rapidly building market share before expanding into new cities.
Why Rapido Is Changing Course
India’s food delivery industry is one of the country’s most competitive digital businesses.
Consumers have become accustomed to ordering food through discount offers, cashback rewards, and membership benefits provided by platforms such as Zomato and Swiggy. While Ownly’s transparent pricing model appealed to restaurant partners, attracting large numbers of customers without promotional incentives has proven more challenging.
By introducing limited-time discounts, Rapido appears to be balancing its original philosophy with the realities of competing against well-established rivals that have spent years building customer loyalty through promotional campaigns.
Ownly’s Original Business Model
| Feature | Original Strategy | Current Approach |
|---|---|---|
| Restaurant commissions | Zero | Zero |
| Hidden platform fees | None | None |
| Everyday pricing | Core strategy | Continues |
| Customer discounts | Not planned | 25% pilot in Bengaluru |
| Restaurant focus | High | High |
Despite the discount pilot, Rapido is expected to continue emphasizing its zero-commission model, which remains one of Ownly’s biggest differentiators for restaurant partners.
Expansion Plans Continue
The Bengaluru discount trial comes as Rapido prepares to expand Ownly into Pune, one of India’s fastest-growing food delivery markets.
A successful rollout in Pune could provide valuable insights into customer behavior, pricing strategies, and operational efficiency before the company considers launching the platform in additional cities.
The expansion is also expected to strengthen Rapido’s broader super app ambitions, allowing it to leverage its existing rider network across ride-hailing, parcel delivery, and food delivery services.
IPO Preparations Could Be Influencing Strategy
Industry sources believe the shift toward promotional spending may also be linked to Rapido’s longer-term IPO ambitions.
As the company prepares for a potential public listing, demonstrating strong user growth, higher order volumes, and expanding market presence could become increasingly important metrics for investors. Although higher discounts increase short-term losses, rapid customer acquisition may improve the platform’s competitive position before entering the public markets.
Balancing growth with profitability will remain a key challenge, especially as investors have become more focused on sustainable business models following years of heavy cash burn across India’s internet startup ecosystem.
Challenges Ahead
| Challenge | Potential Impact |
|---|---|
| High discount costs | Increased operating losses |
| Strong competition | Pressure from Zomato and Swiggy |
| Customer retention | Need to maintain users after discounts end |
| Expansion execution | Scaling operations across new cities |
| Profitability | Balancing growth with financial discipline |
While discounts can quickly boost order volumes, maintaining customer engagement once promotional offers are reduced remains one of the biggest challenges for food delivery platforms.
What It Means for India’s Food Delivery Market
Ownly’s decision to introduce discounts highlights the practical realities of competing in India’s online food delivery industry. Although Rapido entered the market promising transparent pricing without promotional offers, customer expectations and competitive pressures appear to have prompted a more flexible strategy.
The success of the Bengaluru pilot and the upcoming Pune expansion will likely determine whether Rapido can establish Ownly as a credible third player alongside Zomato and Swiggy. More broadly, the move underscores that even innovative business models often need to adapt to consumer behavior in highly competitive digital markets.
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