Rapido Enters Food Delivery Business to Challenge Zomato and Swiggy
Ride-hailing application Rapido is now venturing into the food delivery business with an aim to directly challenge Zomato and Swiggy. In order to win over restaurants, Rapido is set to offer a lower commission in the range of 8-15%. While the rival platforms charge between 15% and 30%.
Post this news, stock price went down. Swiggy's share value decreased by 2.74% at ₹364.50. Eternal-the parent company of Zomato-ease down by 1.95% to ₹256.85.
Test Run in Bengaluru by End of the Month
Rapido will test food delivery services in Bengaluru later this month. The company will charge ₹25 for deliveries below ₹400. Orders above ₹400 will carry a ₹50 delivery fee.
Rapido suggests restaurants charge ₹150 for ingredients. It is hoped that this approach will drive order volumes for small restaurants. Experts think that the model can enable Rapido to capture more small restaurants' business and disrupt the market leadership of existing players.
Partnership With NRAI to Assist Small Restaurants
To aid the launch, Rapido will collaborate with the National Restaurants Association of India (NRAI). The aim is to create a platform that assists small restaurants in expanding. Rapido will list dining options within the app and enable customers to order conveniently.
The firm is also considering a subscription-based model for additional value.
Growth in Andhra Pradesh
Rapido is growing its presence in Andhra Pradesh. It has launched services in 14 new cities: Tenali, Ongole, Vizianagaram, Eluru, Madanapalle, Machilipatnam, Chittoor, Srikakulam, Bhimavaram, Gudivada, Narasaraopet, Nandyal, Tadepalligudem, and Tadipatri.
Pawan Guntupalli, Rapido’s co-founder, stated that the expansion will create jobs. Many young men and women can now work as Rapido captains and earn income.
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