Ola rival Rapido to enter food delivery space to challenge Zomato-Swiggy duopoly, report says

Rapido, the Bengaluru-based ride-hailing startup known for its bike taxis, is reportedly exploring a move into food delivery in a bid to challenge the dominant market positions of Swiggy and Zomato.

According to ET report, the company is in early talks with restaurant partners to develop a new business model that could revamp industry commission structures.

Growing ambitions

Rapido has seen rapid growth since its launch in 2015, emerging as a significant player in India’s ride-sharing market and recently surpassing $1 billion in annual gross merchandise value.

The company is reportedly now meeting with restaurant operators to discuss how to offer food delivery through Rapido’s existing fleet of two-wheelers. Although final details have not been confirmed, Rapido already handles deliveries on behalf of Swiggy and the government-run Open Network for Digital Commerce (ONDC).

Building on investment  

The company has raised substantial funding over the past year, including $30 million in February from Dutch investment company Prosus.

This followed a $200 million round led by WestBridge Capital, lifting Rapido’s valuation to $1.1 billion. Swiggy itself is an investor in Rapido, but reports indicate that its investment did not include an exclusivity clause, giving Rapido the option to enter the food delivery market on its own terms.

Expansion plans  

Rapido, which currently operates in more than 100 cities, aims to expand to 500 cities by 2025. The company has been posting steady growth in ride volumes, surging from about 2.6 million daily rides in November to between 3.2 million and 3.5 million daily rides more recently.

Although bikes form the core of Rapido’s ride network, it also offers auto-rickshaw and four-wheeler services under a subscription-based model for drivers, who pay a daily or weekly fee instead of per-ride commissions.

Competition and challenges  

Swiggy and Zomato maintain a duopoly in India’s food delivery landscape, despite ongoing tensions with restaurants over commission fees. Notably, both companies have experimented with faster delivery services and have raised platform fees in the past year to improve their financial performance.

While food delivery growth has slowed, Rapido appears eager to seize the opportunity to disrupt an industry that is looking for more sustainable and cost-effective service models.