0 months ago
Rapido's Ownly bets on low logistics cost, zero platform fees
Rapido is a company that usually helps people get rides on bikes and autos.
It also started a food delivery service called Ownly in the city of Bengaluru.
Ownly lets people order food from more than 25,000 restaurants nearby.
The company says it does not charge restaurants or customers extra platform fees.
It also pays for discounts itself instead of making restaurants pay.
Rapido's co-founder says almost all of their money is spent on delivering food.
Because they spend less on other things, they can keep prices lower than bigger delivery apps.
They plan to start delivering in more cities very soon.
Big burger chains like Burger King and Subway have already joined the platform.
Rapido hopes to grow Ownly across all of India in the future.
Rapido officially launched its food delivery platform Ownly in Bengaluru in March, onboarding more than 25,000 restaurants.
Ownly pledges to never charge a platform fee and currently waives delivery fees, funding limited discounts itself.
About 95% of Ownly's costs are variable, with logistics accounting for nearly 90% of that cost base.
Rapido phased out its Magicpin integration as KFC and McDonald's went offline, while Burger King, Subway and Taco Bell were onboarded directly.
Rapido raised $240 million in May, and Uber infused about $350 million into India, as competitive intensity is expected to stay rational.
- Who
- Aravind Sanka, co-founder of Rapido, speaking about its food delivery platform Ownly.
- What
- Rapido's Ownly food delivery platform is expanding beyond Bengaluru with a zero platform fee and low logistics cost model.
- Where
- Bengaluru, India, with plans to eventually go pan-India.
- When
- Officially launched in March in Bengaluru; expansion to more cities is planned for next quarter.
- Why
- To create a new affordable food delivery market by keeping logistics costs low and building trust through transparency.
Key facts
- Platform
- Ownly, operated by Rapido
- Restaurants onboarded in Bengaluru
- More than 25,000
- Official launch
- March, in Bengaluru
- Platform fee
- Zero, promised to never be charged
- Cost structure
- About 95% variable costs; logistics is nearly 90% of that
- Rapido funding raised
- $240 million in May
- Uber investment in India
- About $350 million
- QSRs onboarded directly
- Burger King, Subway, Taco Bell
Quotes
Rapido Co-founder Aravind Sanka
Founder of Rapido’s food delivery platform Ownly
“We will never charge a platform fee. Our model is built on transparency and trust. We will pass on the major cost — that of delivery — to customers.”
financialexpress.com
“We can operate very lean. We are operationally profitable, though not yet at the EBITDA level. We cover all variable costs.”
financialexpress.com
Sources
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