Ride-sharing app Rapido reportedly plans to introduce a food delivery service on its platform. The company is currently discussing expanding its operations into this new sector with restaurant owners.
The report also mentions that some of Rapido’s executives have met with restaurateurs to develop a business strategy to challenge the commission model used by established food delivery platforms like Zomato and Swiggy.
Launched in 2015 as a bike taxi service, Rapido has quickly risen to secure the second position in India’s ride-sharing market. This move comes as Rapido looks to enter its next phase of growth, following its achievement of surpassing $1 billion in annualized gross merchandise value (GMV).
The report citing sources also stated, “These are early discussions to determine if Rapido can challenge the Zomato-Swiggy duopoly. The company already offers delivery services for individual restaurants using its two-wheeler fleet.” It further stated that the discussions are underway, and the plans have not been finalized yet.
It’s important to note that Rapido already handles food delivery on behalf of Swiggy, an investor in the ride-sharing startup. According to the report, Swiggy’s investment in Rapido did not include an exclusivity agreement.
Currently operating in 100 cities, Rapido plans to expand its service to 500 cities across India by 2025. This expansion follows the company’s recent $30 million funding round in February, backed by Prosus, a Dutch investment firm. This latest fundraising is an extension of the $200 million raised in the previous year during a round led by WestBridge Capital, which helped boost the company’s valuation to $1.1 billion.
The report also mentioned that Rapido, originally a bike-taxi platform, has seen a rise in daily ride bookings. In November, the platform averaged 2.6 million rides per day, which has increased to between 3.2 and 3.5 million daily rides.
Although Rapido’s ride volumes are still primarily driven by bike taxis, the number of auto-rickshaws and four-wheeler cabs on the platform is skyrocketing. This growth is attributed to the company’s subscription-based model, which allows gig workers and drivers to access the platform and its users for a daily or weekly fee rather than paying a commission on each ride.
Rapido’s move into the online food delivery market comes at a time when the sector is experiencing slower growth, as restaurant owners and delivery platforms are disputing commission rates.
As Deepinder Goyal, the founder of Zomato, noted, the slowdown in the food delivery industry has been linked to systemic issues.
