Food Delivery Apps: Rapido Soon to Launch Food Delivery Service, Shares of Zomato-Swiggy Plummet

Food Delivery Apps: Rapido’s arrival threatens Zomato and Swiggy’s supremacy in India’s food delivery business. Since June 9, both firms’ shares have fallen, apparently due to Rapido launching its experimental meal delivery service in Bengaluru under the name “ONLY.”  This platform promises to close the gap between offline and online food pricing by limiting additional fees. Unlike existing competitors who charge multiple fees for delivery, platform, and distance-based services, Rapido plans to provide a straightforward pricing model with a flat Rs 20 price (excluding GST) for orders under Rs 100 and no commissions, which may appeal to both customers and restaurants.

Rapido Food Delivery App

Rapido plans to scale swiftly by using its existing infrastructure and user base. With 30 million monthly active users and operations in 500 cities, delivering over 4 million rides, it already has a large logistical network. This provides it an advantage over Swiggy and Zomato, who have to invest on onboarding delivery staff. While Rapido’s entry adds competitive pressure, the food delivery market remains hard, as evidenced by previous exits such as Uber Eats. The long-term success of Rapido’s approach will be determined by its capacity to remain profitable and provide consistent service while competing with established rivals.