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Launch · Mobility & Logistics

Rapido launches food delivery pilot to challenge incumbents

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Rapido logo
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.

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