Rapido launches Ownly, its food delivery platform. Will it disrupt the duopoly or become just another casualty in India’s brutal food tech war?

In a bold move that could reshape India’s hypercompetitive food delivery industry, Rapido, best known for its bike taxis and auto-rickshaw aggregator services, has officially stepped into the food delivery space with its new platform — Ownly. The Bengaluru-based startup has begun piloting the service in the city, with full-scale operations expected to begin by late June or early July 2025.

This foray represents one of the most ambitious diversification efforts in Rapido's journey so far and is being closely watched by both industry insiders and market analysts.

Key Highlights:

• Zero-Commission or Low-Fee Model:
  Unlike Swiggy and Zomato, which charge commissions ranging from 10% to 30%, Rapido is introducing a disruptive zero-commission or low-commission model (as low as 8–15% in some cases). Restaurants will instead pay a flat delivery fee based on order value and distance, starting at ₹20 for orders below ₹100 and up to ₹50 for orders above ₹400 (within a 4-kilometer radius).

• Restaurant-Friendly Policies:
  Rapido mandates price parity between offline and online menus — a stark contrast to inflated prices and packaging charges typically seen on other platforms. Restaurants can also use their own delivery fleets for free, or tap into Rapido’s network of over 3 million ‘captains’ (riders).

• Subscription Revenue Strategy:
  The company plans to roll out a monthly subscription model for restaurants to access the platform's technology and delivery infrastructure — similar to its mobility business — allowing it to avoid dependence on commission-based earnings.

• Strategic Partnership with NRAI:
  Rapido has tied up with the National Restaurants Association of India (NRAI), representing over 500,000 food establishments, further boosting its credibility and signaling strong support from small and medium-sized restaurants.

• Funding and Financials:
  Rapido recently raised ₹125 crore ($14.6 million) from Nexus Ventures as part of its $200 million Series E round, pushing its valuation to $1.1 billion, officially making it a unicorn. Earlier this year, Prosus invested ₹250 crore to support Rapido’s diversification, including its upcoming fintech vertical.

The Big Question: Can Rapido Break the Duopoly?

India's food delivery market is projected to exceed $20 billion by 2030, currently controlled almost entirely by Zomato (54%) and Swiggy (46%). Multiple giants, including Amazon Food, Ola, and Uber Eats, have previously failed to gain traction in this fiercely competitive space due to high operational complexity, thin margins, and the difficulty of scaling both supply and logistics.

However, Rapido’s approach is different — asset-light, tech-first, and rider-sharing-based.

According to Karan Taurani of Elara Capital, if Rapido can capture even 10–12% market share, it could cause "a dent" in Swiggy and Zomato’s toplines and valuations. Taurani believes the low-cost, transparent model will appeal to a growing segment of urban and semi-urban consumers ("Bharat") and offer much-needed relief to restaurant partners crushed under high platform commissions.

Why Rapido Thinks It Will Work

• Shared Fleet Advantage:
  Rapido plans to use its existing rider base from its bike taxi and logistics operations to handle food deliveries — a move that reduces incremental capex compared to dedicated food delivery fleets. On May 24, Rapido reported 4 million rides in a single day, with an average of 3.5 million daily rides — showing potential for cross-utilization.

• Customer Data for Restaurants:
  Restaurants partnering with Ownly will reportedly gain access to customer data for marketing, helping them build direct relationships and boost repeat business — something Zomato and Swiggy typically restrict.

• Transparent, No-Markup Pricing:
  Consumers tired of hidden charges and inflated prices may gravitate toward a platform promising offline = online pricing.

Analyst Caution: Execution Will Be Key

Despite the buzz, several brokerages remain skeptical.

• Operational Challenges:
  Bernstein, Kotak Institutional Equities, and HSBC all pointed out that scaling restaurant partnerships, last-mile logistics, and ensuring delivery consistency without a dedicated fleet are massive hurdles. Sub-30-minute delivery expectations, now the norm, will be difficult to meet with a shared rider base.

• Formidable Competition:
  Zomato and Swiggy have already onboarded 314,000 and 252,000 restaurants respectively and are deeply embedded in consumer behavior. Breaking this habit loop will take time, capital, and flawless execution.

• Financial Strain:
  Rapido’s core ride-hailing business still burns $5 million per month. While it has improved financials — ₹648 crore revenue in FY24 (up 46.3% YoY) and losses narrowed to ₹371 crore — adding a cash-intensive vertical like food delivery could stretch resources unless scale is achieved quickly.

Swiggy and Zomato Already Reacting

In an early sign of pressure, both Zomato and Swiggy have slashed delivery prices on high-frequency items like McDonald’s burgers in certain markets, signaling that Ownly’s entry has not gone unnoticed. Analysts suggest this may be the beginning of a more competitive pricing era — beneficial for consumers, but tougher for profitability.

What’s Next for Rapido?

Apart from food delivery, Rapido is eyeing a fintech play, possibly in micro-lending or embedded finance, though details remain scarce. The company’s previous experience working with ONDC and Swiggy (Swiggy owns a 15% stake in Rapido) also provides it with valuable backend insights into food logistics.

Senior Journalist's Perspective: A Disruptor or a Diversion?

“Rapido’s entry into food delivery is reminiscent of the early days of its bike taxi revolution — lean, scrappy, and focused on Bharat. Its biggest strength lies not in technology or funding, but in understanding the Indian middle class’s need for affordability without compromise. That said, challenging Swiggy and Zomato is not just about price — it’s about habit, scale, and consistency. If Rapido treats this as a marathon, not a sprint, it may very well become the third pillar in India’s food delivery landscape. But one thing is certain: it will shake up the complacency of the duopoly — and that’s already a win for restaurants and consumers alike.”