Rapido, the Bengaluru-based startup best known for its bike taxi services, is reportedly gearing up to enter the food delivery space, setting the stage for a direct face-off with industry giants Swiggy and Zomato. According to an Economic Times report, the company has begun discussions with restaurant operators to explore a business model that could challenge the existing commission-heavy structure.
Aiming Beyond Ride-Sharing
Since its launch in 2015, Rapido has steadily carved out a strong position in India’s ride-hailing market, recently crossing $1 billion in annual gross merchandise value. Now, the company is looking to leverage its vast fleet of two-wheelers for food deliveries. While details remain under wraps, Rapido already has experience in the logistics space, handling deliveries for Swiggy and the government-backed Open Network for Digital Commerce (ONDC).
Strengthening Its Financial Backing
Rapido has been actively raising funds to fuel its expansion. In February, it secured $30 million from Dutch investor Prosus, adding to a $200 million funding round led by WestBridge Capital last year. This pushed the company’s valuation to $1.1 billion. Interestingly, Swiggy itself is an investor in Rapido, but reports suggest that there are no exclusivity clauses preventing Rapido from launching its own food delivery business.
Scaling Up Operations
Currently operating in over 100 cities, Rapido has aggressive plans to expand to 500 locations by 2025. The company’s ride volume has been climbing steadily, jumping from 2.6 million daily trips in November to around 3.5 million recently. While bike taxis remain its core offering, Rapido also provides auto-rickshaw and four-wheeler services, using a subscription model where drivers pay a fixed fee instead of per-ride commissions.
Challenging an Established Duopoly
Swiggy and Zomato have long dominated India’s food delivery sector, but their relationships with restaurants have been strained over commission fees. Both companies have also been experimenting with ultra-fast delivery and raising platform charges to improve profitability. With food delivery growth slowing, Rapido might see an opportunity to shake up the market by offering a more cost-effective model for restaurants and customers alike.
Whether Rapido can disrupt an industry controlled by two giants remains to be seen, but its strong presence in mobility and logistics could give it a unique edge in this high-stakes competition.
