Rapido to Take on Zomato, Swiggy with Its Own Food Delivery Service

Rapido is set to break into the food delivery segment after competing with food delivery leaders Zomato and Swiggy, Rapido does delivery services for Swiggy but is looking to step into the ring independently.

Rapido’s Strategic Leap into Food Delivery

According to the sources, Rapido was reported to be in discussions with restaurant partners to disrupt the existing commission-based service model that wannabe competitors intend to use. Starting as a bike taxi service in 2015, the company has since emerged as India’s second largest ride sharing platform within a couple of years. Its venture into food delivery is a clear indication of aggressive growth strategy considering the company’s annualized gross merchandise value (GMV) is over $1 billion.

“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.” As per sources.

As Swiggy has Rapido's equity stake, the startup has been assisting with food deliveries. Nevertheless, lacking an exclusivity clause in the investment, Rapido is positioned to begin new developments.

Industry Shake-Up: Regulatory Hurdles and Market Dynamics

At the same time, Zomato's Chief Executive Officer, Deepinder Goyal, has claimed that there are challenges in the delivery system that are complex and systemic. Complicating matters, the All India Consumer Products Distributors Federation (AICPDF) has lodged an antitrust lawsuit against Blinkit (Zomato's quick commerce subsidiary), Swiggy Instamart, and Zepto. Reuters examined the complaint and found that it blames these companies for charging below market rates and offering discounts beyond reasonable levels, which supposedly harms conventional petty shop owners.

AICPDF upholds 400000 distributors who usually supply well-known brands like Nestle Unilever and Tata. It declares that the aggressive pricing strategies of quick commerce players cannot be matched by the little retailers or petty ones. Even as it remains a core bike-taxi service, Rapido is gearing up to make a splash in food delivery, even as the industry shifts and faces regulatory scrutiny. Can the mighty two-wheeler fleet and established logistics infrastructure provide Rapido the extra edge it needs to dislodge the Zomato-Swiggy stronghold? Only time will tell.