Rapido, a well-known ride-sharing app, is reportedly planning to expand its services by introducing food delivery on its platform. According to a report by The Economic Times, the company is in discussions with restaurant owners to explore this new opportunity and expand beyond its core ride-sharing business.
Rapido’s Plans to Compete with Zomato & Swiggy
As per the report, Rapido’s top executives have been engaging with restaurant operators to develop a business strategy. The company aims to offer an alternative to the high commission structures currently imposed by leading food delivery platforms such as Zomato and Swiggy.
Rapido, which started as a bike taxi service in 2015, has quickly climbed the ranks to become the second-largest ride-sharing platform in India. With an annual gross merchandise value (GMV) exceeding $1 billion, the company is now looking to expand its revenue streams.
Sources familiar with the matter mentioned that Rapido is exploring whether it can challenge the dominance of Zomato and Swiggy in food delivery. The company already provides delivery services for independent restaurants using its two-wheeler fleet. However, discussions regarding its official entry into the food delivery market are still in the early stages, and nothing has been finalized yet.
Rapido’s Existing Ties with Swiggy
Interestingly, Rapido is already involved in food delivery services for Swiggy, as Swiggy has invested in the startup. However, the investment did not come with an exclusivity clause, meaning Rapido is free to launch its own food delivery operations.
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Rapido’s Expansion Plans
Currently operating in 100 cities, Rapido has ambitious plans to expand its footprint to 500 cities by 2025. This expansion follows the company’s successful $30 million funding round in February, led by Dutch investment firm Prosus. Earlier, in 2023, Rapido secured $200 million from investors, including WestBridge Capital, bringing its valuation to $1.1 billion.
The ride-sharing platform has also seen an increase in daily ride bookings, growing from 2.6 million rides in November to 3.2–3.5 million rides per day. Although bike taxis remain Rapido’s primary service, the number of auto-rickshaws and four-wheeler cabs on its platform is rising rapidly. Instead of charging a commission per ride, Rapido follows a subscription-based model, allowing gig workers and drivers to pay a daily or weekly fee to access customers.
Challenges and Opportunities in Food Delivery
Rapido’s potential entry into the food delivery industry comes at a time when the sector is experiencing slower growth. Disagreements between restaurants and aggregators over high commission rates have contributed to this slowdown. Zomato’s founder, Deepinder Goyal, has pointed out systemic issues affecting the food delivery business.
By offering a new commission model, Rapido could disrupt the existing market and provide restaurant owners with a more cost-effective alternative to established food delivery giants. However, the company’s official plans are still being formulated, and its future in food delivery remains to be seen.