Rapido, a mobility platform based in India, has started a pilot of its standalone food delivery app, Ownly, in Bengaluru neighborhoods such as Koramangala and HSR Layout.

The company also plans to expand the service to other parts of Bengaluru in the coming months, with a further rollout to cities like Delhi NCR and Mumbai depending on its performance in Bengaluru.

Ownly uses Rapido’s existing rider network for deliveries and has introduced a three-tier flat pricing model for restaurants, with commissions ranging between 8% and 15%.

This is lower than the typical commission rates of 16%, 20%, or 30% seen in the industry.

The launch puts Rapido in direct competition with food delivery giants Swiggy and Zomato.

Separately, Swiggy has indicated plans to exit its investment in Rapido, after having led a US$180 million funding round in 2022 and currently holding about a 12% stake.

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🔗 Source: Entrackr

🧠 Food for thought

1️⃣ Existing logistics infrastructure provides competitive advantage for new market entry

Rapido’s food delivery strategy demonstrates how companies can leverage established operational networks to enter adjacent markets with lower costs.

The company is using its existing ride-hailing fleet for food deliveries, allowing them to offer delivery charges 50% lower than competitors like Zomato and Swiggy1. This infrastructure advantage enables Rapido’s three-tier flat pricing model with rates as low as Rs 20 for orders up to Rs 100, compared to the typically higher and more complex fee structures of incumbent players2.

By avoiding the need to build delivery infrastructure from scratch, Rapido can focus resources on competitive pricing rather than operational setup costs. This operational efficiency translates directly into their value proposition of transparent pricing with no inflated rates, packaging fees, or high restaurant commissions—keeping partner fees at 8-15% versus the industry standard of 16-30%2.

2️⃣ Investor-competitor conflicts create complex strategic dilemmas in competitive markets

Swiggy’s situation with Rapido illustrates the challenging dynamics when investors become direct competitors with their portfolio companies.

Swiggy led a $180 million funding round in Rapido in April 2022 and currently holds approximately 12% stake valued at around $120 million, but is now actively considering offloading this investment due to competitive conflicts3.

This creates a strategic paradox where Swiggy’s financial success as an investor in Rapido directly conflicts with its market position as a food delivery incumbent. The stronger Rapido performs in food delivery, the more valuable Swiggy’s stake becomes, but the more threatened Swiggy’s core business position becomes.

The situation demonstrates how rapidly evolving startup ecosystems can transform strategic partnerships into competitive threats, forcing companies to choose between maintaining investment returns and protecting market share.

Recent Rapido developments

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