Launch · Mobility & Logistics
Rapido launches food delivery pilot to challenge incumbents
By Startup Enthusiast ·
- Date
- Company
- Rapido
- What it does
- Bike taxi and mobility app
- Kind
- Launch
- Amount
- ₹125 crore
- Stage
- Series E
- Based in
- Bengaluru
- Founded
- 2015
- Sector
- Mobility & Logistics
What they do
Rapido is a mobility platform offering bike taxi, auto, and cab booking services across multiple Indian cities
What happened
The company launched a food delivery pilot in Bengaluru, charging restaurants a low flat fee or zero commission
Why it matters
The move aims to disrupt the dominant Zomato and Swiggy duopoly by offering restaurants an alternative to high commissions
The details
- Mobility startup Rapido has launched a food delivery pilot in Bengaluru to challenge established market leaders Zomato and Swiggy.
- The company is rolling out an alternative platform offering lower commission rates to attract restaurant partners struggling with high aggregator fees.
- For its pricing structure, the firm charges restaurants a flat delivery fee of ₹25 for orders under ₹400 and ₹50 for larger orders.
- This pricing translates to an effective commission range of 8–15%, which is significantly lower than the 16–30% charged by incumbents.
- Additional industry reports highlighted a zero-commission initiative known as Ownly designed to keep online prices equal to dine-in menus.
- Ahead of this food delivery push, the company raised ₹125 crore ($15 million) from Nexus Venture Partners as part of its Series E round.
The bigger picture
- Numerous dining establishment proprietors have expressed mounting frustration regarding heavy platform commissions and expensive promotional expenses required for visibility.
- Industry bodies like the National Restaurants Association of India have been seeking fairer partnership models similar to open networks like ONDC.
- Incumbents currently hold a tight duopoly, with Zomato commanding around 54% market share and Swiggy holding 46%.
About the business
- Rapido operates a ride-hailing platform facilitating bike taxis, auto-rickshaws, and cabs through a mobile application.
- The company connects millions of daily commuters with independent drivers, referred to as captains, across hundreds of Indian cities.
- It generates revenue by taking a commission or fee from rides booked through its technology platform.
- The firm leverages its existing hyperlocal logistics network and large rider base to expand into adjacent delivery services.
- It serves tens of millions of active monthly customers seeking affordable daily transit options.
What happens next
- The company plans to expand its food delivery pilot beyond Bengaluru depending on traction and merchant adoption.
The deal
- Type
- funding
Investors
- Nexus Venture Partners (lead) — A prominent venture capital firm investing in technology startups.
- Swiggy (existing) — A major food delivery and quick commerce aggregator in India.
Founders
- Aravind Sanka, Co-founder
- Pavan Guntupalli, Co-founder
- Rishikesh S R, Co-founder
About Rapido
- Product
- A ride-hailing app focused on bike taxis, with expanding mobility and delivery offerings.
- Customers
- Commuters and riders seeking low-cost transport, plus drivers earning through the platform.
- How it makes money
- Charges commissions or service fees on rides and related marketplace transactions.
- What sets it apart
- Uses two-wheelers to provide low-cost, flexible urban transport and matching.
- Operations
- Operates in multiple Indian cities and is building a broader super-app model.
Other articles talking about it
More on Rapido
- Rapido takes food app Ownly to Hyderabad25 September 2026 · Launch
- Rapido penalised for dark patterns and misleading pricing9 September 2026 · Policy · ₹10 lakh
- Rapido's app outage lasted about one hour due to a technical issue27 August 2026 · News
- Rapido and Uber held merger talks that fell through14 August 2026 · Partnership
- Rapido founders booked in Nagpur over unauthorised bike taxi operations13 August 2026 · Legal
- Rapido secures five-year cab licence in Karnataka13 August 2026 · Policy
- Rapido launches Ownly food delivery service in Bengaluru10 August 2026 · Launch
- Rapido launches zero-commission food delivery app Ownly30 July 2026 · Launch