Rapido’s Ownly Offers 15% Lower Food Delivery Prices Than Swiggy, Zomato

India’s bike-taxi giant Rapido has officially entered the competitive food delivery market. Rapido has launched its beta testing program for Ownly food delivery in Bengaluru in three key neighborhoods, TechCrunch reported.

The ride hailing platform started its food delivery at three prime locations in the southern part of the city. Rapido’s cofounder and CEO, Aravind Sanka, confirmed the areas, namely, Byrasandra, Tavarekere, and Madiwala (BTM) Layout, Hosur Sarjapura Road (HSR) Layout, and Koramangala

Revolutionary Zero-Commission Business Model

Rapido is introducing a game-changing approach with its zero-commission food delivery model. Unlike Swiggy and Zomato, which charge restaurants between 16-30% commission, Ownly promises no commission fees, no platform charges, and no packaging costs for restaurant partners.

This disruptive pricing strategy aims to attract restaurants frustrated with high fees charged by existing platforms. The company will not charge a commission from restaurant partners for every order, nor will it have platform fees and packaging costs that are fairly common on Zomato and Swiggy. This approach could fundamentally reshape how food delivery platforms operate in India.

Strategic Market Entry Through Ownly

Ownly apps’ play store launch marks Rapido’s ambitious expansion beyond ride-hailing services. Bike taxi platform Rapido is set to enter India’s food delivery space with a pilot launch of its new offering, Ownly, in select Bengaluru neighborhoods. The app leverages Rapido’s existing network of over 4 million riders across the country.

Rapido chose Bengaluru for its initial testing phase due to the city’s tech-savvy population and strong food delivery market penetration. The company plans to expand to other major cities once the pilot program proves successful in the Karnataka capital.

Direct Competition Against Market Leaders

The launch sets up an interesting battle as Swiggy and Zomato vs Rapido Ownly competition intensifies in India’s food delivery sector. Swiggy and Zomato currently control approximately 90% of the food delivery market, making them formidable opponents for any new entrant.

Rapido has launched Ownly, a zero-commission food delivery platform in selected Bengaluru areas, leveraging its 4 million riders to challenge Swiggy and Zomato’s 90% market dominance. The established players have built strong brand recognition and extensive restaurant partnerships over several years.

Moreover, Swiggy wrote to its shareholders recently that it would reevaluate its investment in Rapido due to a potential conflict of interest. In June, Swiggy’s CEO, Sriharsha Majety, shared his perspective on Rapido’s entry into the food delivery, saying it will face a tough road ahead.

Competitive Pricing Strategy

One of Ownly’s biggest selling points is its 15% lower price offering vs Swiggy, Zomato for customers. This significant price reduction comes from eliminating commission fees and reducing operational costs through Rapido’s existing delivery infrastructure. Through these price reductions, Rapido can challenge Zomato and Swiggy’s dominance in the food delivery market.

The pricing advantage could attract price-sensitive customers who have been dealing with rising food delivery costs on traditional platforms. Rapido’s strategy focuses on providing transparency and lower costs for both restaurants and consumers.