Rapido, one of India’s leading ride hailing platforms, has quietly started beta testing its food delivery service in Bengaluru, signalling its first major step towards challenging market leaders Swiggy and Zomato in the fast growing food delivery sector.
The ten year old startup is currently testing the service in three key areas of the city — Byrasandra, Tavarekere, and Madiwala (BTM) Layout, Hosur Sarjapura Road (HSR) Layout, and Koramangala. Rapido co founder and CEO Aravind Sanka confirmed the development.
The service will operate under a new wholly owned subsidiary, Ctrlx Technologies, with Sanka and Rapido vice president of finance Vivek Krishna listed as directors. Sanka said there was no specific reason for creating the subsidiary, though it may help avoid possible conflicts with Swiggy, which owns a 12 percent minority stake in Rapido. Swiggy recently informed its shareholders that it would review its investment due to potential conflicts of interest.
Rapido’s food delivery brand, named Ownly, has launched an Android app on Google Play. It offers food from nearby restaurants at prices around 15 percent lower than Swiggy and Zomato by not charging commissions to restaurants, instead applying a fixed fee per order. This approach, outlined in a June proposal to restaurants, contrasts with the up to 30 percent commissions taken by other delivery apps.
With a nationwide fleet of about 10 million vehicles, including 5 to 6 million two wheelers, Rapido is using its bike network for deliveries while continuing taxi and courier services. The company plans to limit restaurants shown to customers based on location to cut fuel costs and delivery times, while curating menus to balance margins and choice.
Rapido has gained valuable insights into high demand times and popular restaurants through its past work with Swiggy, which it can use for its own operations. The agreement with Swiggy prevents partnerships with Zomato or similar rivals but does not restrict use of this data.
Founded in 2015, Rapido expanded from bike taxis to autos, parcels, logistics, and cabs, and partnered with Taiwanese electric two wheeler maker Gogoro. Operating in over 250 cities, the company handles more than 3.5 million rides daily and became a unicorn last year.
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