Rapido Enters Food Delivery with 'Ownly'
Ride-hailing giant Rapido has officially entered the competitive food delivery market, launching a new service named 'Ownly'. The move is a direct challenge to the established duopoly of Swiggy and Zomato. The service is currently being tested in select areas of Bengaluru, signaling Rapido's most significant expansion beyond its core mobility business.
New Business Model, Lower Prices
Ownly's main strategy is to offer food at prices around 15% lower than its rivals. Rapido is able to do this by adopting a different business model. Instead of charging restaurants a high commission on each order, which can be up to 30%, Ownly operates on a fixed-fee-per-order system. This approach is designed to be more favorable for restaurant partners and more affordable for customers.
To ensure efficiency, the service will also focus on tight delivery zones, showing users only nearby restaurants to speed up delivery times and reduce costs. Rapido plans to leverage its massive existing fleet of around 10 million vehicles to power the new service.
Conflict and Competition
This strategic pivot creates a complex situation for Swiggy, which is an investor in Rapido. With its portfolio company now becoming a direct competitor, Swiggy has reportedly stated it will "re-evaluate" its investment due to the clear conflict of interest. Rapido's entry, backed by its extensive logistics network and a disruptive pricing model, is set to shake up India's lucrative food delivery industry.
