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India’s Rapido begins testing food delivery to take on Swiggy, Zomato
Rapido, an Indian ride-hailing platform, has launched a beta test of its food delivery service, Ownly, in Bengaluru to compete with Swiggy and Zomato. The app offers food at about 15% lower prices by charging restaurants a fixed fee instead of commissions. This strategic move follows Swiggy's investment in Rapido and aims to capitalize on India's growing food delivery market, projected to exceed ₹2 trillion by 2030.
Key points
- Rapido has introduced Ownly, a food delivery service, as part of its expansion efforts in response to the competitive landscape dominated by Swiggy and Zomato.
- Ownly is currently in beta testing in key areas of Bengaluru: Byrasandra, HSR Layout, and Koramangala.
- The app was developed under a new subsidiary, Ctrlx Technologies, to avoid conflicts related to Swiggy's minority investment in Rapido.
- Rapido offers food at around 15% lower prices than competitors due to a different pricing model that charges a fixed fee per order instead of high commissions.
- By leveraging insights gained while delivering for Swiggy, Rapido aims to optimize delivery efficiency and reduce costs.
Why it matters
- India's online food delivery market is anticipated to dramatically grow, reaching approximately $23 billion by 2030, indicating a significant opportunity for new entrants like Rapido.
- Swiggy's previous investment in Rapido raises questions about potential conflicts of interest in the fast-evolving food delivery landscape.
- The competitive strategies employed by Rapido reflect broader trends in the tech industry focusing on consumer-centric models and cost reductions.
With the launch of Ownly, Rapido is poised to disrupt India's food delivery market, challenging established players through innovative pricing and strategic insights, heralding a new chapter in digital service expansion.