Rapido Eyes Food Delivery Market, Aims to Challenge Swiggy and Zomato
12-March-2025 New Delhi: Ride-hailing platform Rapido is exploring an expansion into the food delivery sector, setting the stage for a potential shake-up of the existing duopoly dominated by Zomato and Swiggy. Sources familiar with the matter revealed that the company is actively engaging with restaurant owners to devise a business model that challenges the high commission rates imposed by current market leaders.
Senior Rapido executives have been in discussions with restaurateurs to finalize a feasible approach for integrating food delivery services into their existing operations. While details are still being worked out, insiders suggest the move could offer a more cost-effective alternative to the prevailing commission-heavy structure.
“If Rapido can successfully challenge the Zomato-Swiggy duopoly, it could significantly alter the competitive landscape of India’s food delivery industry,” an industry source said.
Swiggy Connection
Interestingly, Rapido already operates within the food delivery ecosystem by providing logistics support for Swiggy. The Bengaluru-based startup counts Swiggy as one of its investors, though its investment in Rapido does not include an exclusivity clause, leaving room for Rapido to explore independent ventures in the segment.
Growth Trajectory and Market Position
Rapido, which launched in 2015 as a bike-taxi platform, has grown to become the second-largest player in India’s highly competitive ride-hailing space. The company has steadily expanded its footprint, now operating in over 100 cities across India.
In February, Rapido raised $30 million in funding from Dutch investment firm Prosus as part of an extension to its previous $200 million funding round led by WestBridge Capital. The company has also been scaling its operations aggressively, reporting a 46% year-on-year increase in revenue to ₹648 crore in FY24, while managing to reduce its net loss to ₹17 crore from ₹74 crore the previous year.
Future of Food Delivery Ambitions
The company’s entry into food delivery is expected to leverage its fleet of two-wheelers, a key advantage over traditional four-wheeler-dependent aggregators. The move aligns with Rapido’s broader expansion strategy, which includes experimenting with alternative pricing models for gig workers and drivers.
While the company remains tight-lipped on specifics, industry experts believe Rapido’s foray into food delivery could present much-needed competition in a space currently dominated by just two major players. If successful, it may reshape the economics of the food delivery business in India by offering more sustainable commission structures for restaurant partners.
As the discussions progress, all eyes will be on Rapido to see if it can carve out a niche in this fiercely competitive market.
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