Rapido, a popular ride-hailing platform in India, has quietly begun beta testing its food delivery service in Bengaluru. This marks its first serious move to challenge market leaders Swiggy and Zomato in one of the world’s fastest-growing delivery markets.
The 10-year-old startup is testing its food delivery service in three primary localities in Bengaluru: Byrasandra, Tavarekere, and Madiwala (BTM) Layout, Hosur Sarjapura Road (HSR) Layout, and Koramangala. Rapido co-founder and CEO Aravind Sanka confirmed this development.
Rapido created a wholly owned subsidiary, Ctrlx Technologies, to launch its food delivery service, named Ownly. Regulatory filings show Sanka and Rapido’s vice president of finance, Vivek Krishna, as the directors of the subsidiary.
Sanka stated there was no specific reason for setting up the subsidiary, though it may be a strategic move to avoid potential conflicts of interest with Swiggy, which holds a 12% minority stake in Rapido. Swiggy recently informed shareholders that it would reevaluate its investment in Rapido due to possible future conflicts of interest.
Ownly has released its Android app on Google Play, offering food from nearby restaurants at around 15% lower prices than Swiggy and Zomato. The lower pricing stems from Rapido’s model of not charging restaurants commissions, which can reach up to 30% on other platforms. Instead, Ownly charges a fixed fee per order.
Rapido operates a fleet of around 10 million vehicles, including 5 to 6 million two-wheelers, across India. The company is leveraging its two-wheeler fleet for food delivery while continuing its taxi and courier services.
To optimize efficiency, Rapido will avoid showing distant restaurants to reduce fuel costs and delivery times. The app will also curate menu items to balance margins and discoverability, according to an investor familiar with the company’s strategy.
While handling deliveries for Swiggy, Rapido gained insights into peak hours and high-demand restaurants—data it now plans to use for its own service. The agreement with Swiggy does not restrict Rapido from using this data but prohibits partnerships with Zomato or other competitors.
Founded in 2015, Rapido started as a bike taxi aggregator before expanding into auto rickshaws, parcel delivery, and third-party logistics. In 2023, it entered the cab business to compete with Uber and Ola, gaining traction with its subscription-based model.
Rapido also partnered with Taiwanese battery-swapping electric two-wheeler maker Gogoro to deploy its vehicles as bike taxis. These moves helped the startup boost its valuation, achieving unicorn status last year.
India’s online food delivery market is projected to exceed ₹2 trillion (approximately $23 billion) by 2030, according to a report by Bain & Company and Swiggy. Zomato currently leads with a 58% market share, while Swiggy holds 42%. Uber was an early player in the space but sold its UberEats business to Zomato in 2020.
Rapido has raised $574 million in 13 funding rounds and operates in over 250 cities, handling more than 3.5 million rides daily. Key investors include Prosus, WestBridge Capital, Nexus Venture Partners, and Think Investments.