Ride-hailing platform Rapido is planning to add food delivery services on its app as reports claim of ongoing discussions about the same with restaurant partners, Economic Times reported. The discussions between senior executives of Rapido and restaurant owners are aimed at figuring out a suitable business model that can challenge the current commission‐based model of Zomato and Swiggy.
“These are early discussions to determine if Rapido can challenge the Zomato-Swiggy duopoly. The company already offers delivery services for individual restaurants using its two‐wheeler fleet,” a source said, adding that these plans have not been finalised yet.
Notably, Rapido already does food delivery on behalf of Swiggy and government‐run Open Network for Digital Commerce (ONDC). It reportedly works with only two players on its B2B logistics arm, which is confined to food delivery. Swiggy is an investor in the ride‐sharing start‐up but the investment reportedly did not come with an exclusivity clause.
The Quick‐Commerce Race
This comes at a time when there is a tug‐of‐war brewing in India's quick commerce sector with major players like Blinkit, Swiggy Instamart and Flipkart's newly launched 'Minutes'. It is also a time when e‑commerce companies have started making their way into the quick commerce race to tap its market potential.
The Bengaluru‑based mobility start‐up has raised $200 million in a funding round led by existing investor WestBridge Capital, taking the company's valuation to $1.1 billion. The funding round saw the participation of venture capital fund Nexus Venture Partners, with new backers Think Investments and New York‑based Invus Opportunities.
Zomato and Swiggy currently dominate the food delivery market, though restaurants have previously raised concerns about the high commissions charged by these platforms. As growth in food delivery slows, both companies have introduced 10–15‑minute delivery services. Additionally, to improve their financial performance, they have increased platform fees several times over the past year.
Meanwhile, Rapido, after gaining traction in the ride‑hailing segment, appears to be expanding its services to boost revenue. The company aims to extend its presence from 120 cities to 500 across the country.
