Bike taxi platform Rapido is set to enter the food delivery market with a pilot program in Bengaluru, expected to roll out in the coming weeks. Backed by WestBridge Capital, the company aims to tap into the growing demand for quick-service restaurant deliveries while leveraging its existing logistics expertise.
Rapido food delivery service: Focus on larger restaurant chainsAs reported by Economic Times, Rapido plans to collaborate with major restaurant chains, including McDonald's, KFC, and Pizza Hut, as well as high-frequency cloud kitchens. The initial focus will be on short-distance deliveries—up to 5 kilometers—from densely located outlets in top cities. This strategy targets a substantial share of orders from larger chains while offering consumers a broader choice through smaller outlets.
Subscription-based model
Unlike competitors Zomato and Swiggy, Rapido will adopt a subscription-based model for restaurants. This approach involves charging a fixed periodic subscription fee and a per-order delivery fee, rather than a percentage commission. The model aims to reduce costs for restaurants, potentially passing savings on to consumers.
Rapido’s move into food delivery comes as the company seeks new growth avenues, having already achieved $1 billion in gross merchandise value last fiscal. While the food delivery market faces slowing growth, Rapido aims to carve out a niche by targeting consumers with lower average order values (AOVs), estimated at Rs 250 or less.
This expansion aligns with Rapido’s broader strategy to diversify its offerings, which also includes plans for insurance distribution. The company’s entry into food delivery could disrupt the market, providing an alternative to established players while addressing evolving consumer needs.
Rapido food delivery service: Focus on larger restaurant chainsAs reported by Economic Times, Rapido plans to collaborate with major restaurant chains, including McDonald's, KFC, and Pizza Hut, as well as high-frequency cloud kitchens. The initial focus will be on short-distance deliveries—up to 5 kilometers—from densely located outlets in top cities. This strategy targets a substantial share of orders from larger chains while offering consumers a broader choice through smaller outlets.
Subscription-based model
Unlike competitors Zomato and Swiggy, Rapido will adopt a subscription-based model for restaurants. This approach involves charging a fixed periodic subscription fee and a per-order delivery fee, rather than a percentage commission. The model aims to reduce costs for restaurants, potentially passing savings on to consumers.
Rapido’s move into food delivery comes as the company seeks new growth avenues, having already achieved $1 billion in gross merchandise value last fiscal. While the food delivery market faces slowing growth, Rapido aims to carve out a niche by targeting consumers with lower average order values (AOVs), estimated at Rs 250 or less.
This expansion aligns with Rapido’s broader strategy to diversify its offerings, which also includes plans for insurance distribution. The company’s entry into food delivery could disrupt the market, providing an alternative to established players while addressing evolving consumer needs.
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