Rapido enters food delivery with 'Ownly'

Ride-hailing platform Rapido is set to make its foray into the online food delivery segment with the launch of a new platform called "Ownly." The company will begin a pilot program for its food delivery services in Bengaluru by late June or early July.

Rapido's new platform, "Ownly," will allow customers to directly browse and order from restaurants. Rapido has partnered with the National Restaurant Association of India (NRAI), which represents over 50,000 eateries, which will help the platform to offer a more economically viable model for restaurants compared to current aggregators.

Under its proposed pricing model, Rapido intends to operate on a zero-commission model for restaurants, instead charging a flat subscription fee once the service scales. During the pilot, restaurants will be charged a fixed delivery fee: ₹25 for orders under ₹400 and ₹50 for orders above ₹400. This translates to commission rates for restaurants ranging from 8-15%, significantly lower than the 16-30% typically charged by existing major players. Additionally, the terms suggest that restaurants will not be permitted to add separate packaging charges, and pricing across online and offline channels will be uniform, ensuring customers pay only the listed price plus GST without additional platform or restaurant mark-ups.

Rapido plans to leverage its extensive network of over 2 million two-wheeler riders for the new service. The company may also offer restaurants the option for self-delivery if they have their own logistics capabilities. This initiative comes at a time when many small and independent restaurants have voiced concerns over the high commission rates imposed by dominant food delivery platforms.