Ride-hailing platform Rapido plans to launch a test program for its food delivery service in Bengaluru in the next few weeks, the Economic Times reported.
The WestBridge Capital-backed start-up plans to partner with major restaurant chains and has been in talks with India franchise operators of McDonald’s, KFC, and Pizza Hut, as well as other quick-service restaurants and cloud kitchen chains with high order frequency.
“Initially, the focus will be on delivering from larger restaurant chains for shorter distances. These chains have some of the densest networks of outlets in top cities, enabling deliveries within a 5 km radius,” said one source, who requested anonymity. “A significant portion of orders comes from these large chains, while the long tail of smaller outlets provides consumers with a broader choice.”
For the quarter ending December 2024, Zomato reported an average of 306,000 monthly active restaurant partners for meal delivery, while Swiggy, an investor in Rapido, had 243,400. Both Swiggy and Rapido are backed by Prosus, a Dutch investment firm.
Challenge Swiggy-Zomato Duopoly
Previously, Rapido was reportedly planning to introduce meal delivery services on its app and is actively negotiating with restaurant partners. Rapido executives are engaging with restaurant owners to develop a business model that challenges the commission-based structures of Zomato and Swiggy.
“These are early discussions to explore whether Rapido can disrupt the Zomato-Swiggy duopoly. The company already provides delivery services for individual restaurants using its two-wheeler fleet,” a source said, noting that these plans are not yet finalised.
Rapido currently provides food delivery services for Swiggy and the government-backed Open Network for Digital Commerce (ONDC). Its B2B logistics arm reportedly partners with only two entities, focusing exclusively on food delivery. Although Swiggy is an investor in the ride-sharing startup, the investment does not include an exclusivity clause.
Quick‐Commerce Race
This development coincides with intensifying competition in India’s quick-commerce sector, where major players like Blinkit, Swiggy Instamart, and Flipkart’s newly launched ‘Minutes’ are vying for dominance. E-commerce companies are also entering the quick-commerce race to capitalise on its market potential.
The Bengaluru-based mobility start-up Rapido raised $200 million in a funding round led by existing investor WestBridge Capital, valuing the company at $1.1 billion. The round saw participation from Nexus Venture Partners, alongside new investors Think Investments and New York-based Invus Opportunities.
