RAPIDO HAS OFFICIALLY entered the online food de livery race, aiming to compete in a space long dominated by Zomato and Swiggy. According to Elara Capital’s latest report, the mobility platform is attempting to use its 4 million-strong rider fleet (3.3 million active daily rides) to plug idle hours with food delivery, without investing in additional capex. With a competitive commission model, Rapido plans to charge restaurants only 8 – 15 per cent, well below Zomato and Swiggy’s 21 – 22 per cent. A flat delivery fee structure is Rs 25 for orders below Rs 400 and Rs 50 for above. It is expected to debut with a pilot launch in Bengaluru with the National Capital Region (NCR) to follow. Full-scale operations are expected to begin post June 2025. What sets Rapido apart from other failed entrants like ONDC, Ola, and Uber Eats is its grip on the last mile. The company’s vast rider base, existing logistics infrastructure, and prior food delivery experience with ONDC give it a major push. The model uses idle riders, algorithms for smart task assignment, and a single app to manage rides, parcels, and food orders, ensuring maximum utilisation with minimum distance. Rapido controls its entire value chain. This could reduce the Codex Alimentarius Com mission (CAC) and operational strain, especially in peak meal-time windows. Despite the advantages, Elara points to one major risk: consumer experience. As India moves gradually towards 30-minute deliveries (e.g. Swiggy’s BOLT, Zomato’s Quick), a cross-utilised fleet may not offer the consistency needed to win customer loyalty. Fetching ride-hailing and food delivery could stretch operations thin. India’s food delivery market stood at USD 9.5 billion in CY24 but has slowed to 15 – 16 per cent Year-on-Year (YoY) growth (from 40 per cent Compound annual growth rate (CAGR) in CY18 – 23). Rapido’s entry benefits from low brand-building costs. Zomato had already spent USD 400 million on their Advertising and Promotion between FY20–FY22. Elara’s analysis warns that if Rapido aggressively scales up, it could unsettle current profitability dynamics. A 200bp drop in revenue growth or a 10 per cent drop in valuation multiple could bring down the target price of their consolidated TP from Rs 300 to Rs 282. In a worst-case scenario (GOV CAGR to 15 per cent and valuation to 44x), it could fall to Rs 263. If executed well, this could be the beginning of a strong third player in India’s food delivery market. If not, it may just repeat the mistakes of those who came before.
