Rapido Eyes Food Delivery Market, Set to Challenge Swiggy and Zomato

Bengaluru-based ride-hailing startup Rapido is reportedly gearing up to enter the food delivery segment, potentially disrupting the existing duopoly of Zomato and Swiggy. The company is currently in discussions with restaurant owners to develop a competitive business model that challenges the high commission structures of the established players.

Rapido’s Expansion Strategy

Rapido, originally launched as a bike-taxi service in 2015, has steadily expanded its operations to cover over 120 cities across India. With plans to increase its presence to 500 cities in the coming years, the company is now looking to diversify its offerings and tap into the growing demand for food delivery services.

According to sources cited in reports, Rapido's leadership team has initiated early-stage discussions with restaurant partners to explore a sustainable and cost-effective model for food delivery. The move aims to provide an alternative to Swiggy and Zomato, both of which have faced criticism over high commission fees charged to restaurants.

Existing Capabilities & Market Positioning

Rapido is not entirely new to the food delivery space. Its B2B logistics division already facilitates deliveries for Swiggy and the Open Network for Digital Commerce (ONDC). This existing infrastructure gives Rapido an operational advantage in expanding its own food delivery business.

Furthermore, Swiggy is an investor in Rapido, which raises questions about how the two companies will navigate potential competition. However, reports suggest that Swiggy’s investment does not include an exclusivity clause, allowing Rapido to pursue independent growth in the segment.

Competitive Landscape & Market Trends

India’s food delivery industry has seen rapid growth over the past few years, but recent trends indicate a slowdown. Zomato currently holds a market share of around 57.1%, according to brokerage firm Bernstein, while Swiggy follows closely behind. Both companies have introduced features like 10–15-minute food deliveries and multiple platform fee hikes to boost profitability.

Despite the dominance of these players, restaurants have frequently voiced concerns over high commission rates and operational costs associated with food aggregators. Rapido's entry into the market could provide a much-needed alternative for restaurants seeking lower-cost solutions.

Funding & Financial Strength

Rapido has been strengthening its financial position through consistent investments. In February 2025, the company secured $30 million from Dutch investment firm Prosus. This follows a $200 million funding round led by WestBridge Capital in 2023. With its valuation now estimated at approximately $1.1 billion, Rapido is well-positioned to fund its expansion and new ventures.

What Lies Ahead?

While discussions with restaurant partners are still in the early stages, Rapido’s entry into food delivery could introduce a major shift in India’s competitive landscape. If successful, the company’s extensive two-wheeler fleet and existing delivery network could help it carve a niche in the industry.

For now, the food delivery plans remain unfinalized. However, with its aggressive expansion strategy and growing financial backing, Rapido appears poised to challenge the existing giants and create new opportunities for restaurants and consumers alike.

Indian Food Times has reached out to Rapido for further comments on its potential food delivery foray. The story will be updated as new details emerge.

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