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Rapido, a prominent ride-hailing platform in India, has taken a significant step by quietly launching its food delivery service in Bengaluru. This move marks the company’s first serious attempt to compete with market leaders Swiggy and Zomato in one of the world’s fastest-growing delivery markets.
### Testing the Waters
The 10-year-old startup has initiated testing of its food delivery service in select areas of Bengaluru, including Byrasandra, Tavarekere, Madiwala (BTM) Layout, Hosur Sarjapura Road (HSR) Layout, and Koramangala. Rapido’s co-founder and CEO, Aravind Sanka, confirmed this development.
### A New Venture
To launch its food delivery service, Rapido established a wholly-owned subsidiary called Ctrlx Technologies. This subsidiary, named Ownly, is headed by Sanka and Rapido’s vice president of finance, Vivek Krishna. The company’s decision to create a separate entity may be a strategic move to avoid potential conflicts of interest with Swiggy, a current minority stakeholder in Rapido.
### Competing on Price
Rapido’s Ownly has introduced an Android app on Google Play that offers food from nearby restaurants at prices around 15% lower than those on Swiggy and Zomato. This cost advantage stems from Rapido’s unique model of not charging restaurants commissions, instead opting for a fixed fee per order.
### Leveraging Insights
With a fleet of around 10 million vehicles, including millions of two-wheelers, Rapido is utilizing its existing infrastructure to offer food delivery services. The company’s experience in handling deliveries for Swiggy has provided valuable insights into customer preferences and peak hours, which it now leverages for its own service.
### Market Dynamics
India’s online food delivery market is poised to grow significantly in the coming years, presenting lucrative opportunities for players like Rapido. With its recent foray into food delivery, Rapido aims to carve out a niche for itself in this competitive landscape.
As Rapido ventures into the food delivery space, it will be intriguing to see how it fares against established players like Swiggy and Zomato. With its innovative approach and expansive reach, Rapido is poised to shake up the food delivery market in India.
