Archive · 16 Jun 2025
Rapido's Food Delivery: Can Low Commission Work?
Rapido, a company offering bike taxis, is trying to deliver food with lower fees for restaurants than popular apps like Swiggy and Zomato.
Experts are unsure if Rapido can make enough money to cover their costs, as they will have to spend a lot on attracting new customers, just like the bigger apps do.
Because these big companies already have many customers and restaurant partnerships, it could be hard for Rapido to catch up.
Analysts also point out that past attempts to offer multiple services within one app haven't worked well.
Rapido plans to launch food delivery with a low commission model, aiming to undercut competitors like Swiggy and Zomato.
Analysts at Kotak Institutional Equities question Rapido's ability to cover delivery costs and acquire customers with this strategy.
Zomato and Swiggy spend a significant amount on customer acquisition, for instance, Zomato spent Rs 37/order in FY2020.
Rapido may struggle to compete with existing players as they have a deeply entrenched customer ecosystem.
Kotak expects Zomato and Swiggy to maintain similar take rates, and doesn't foresee significant risks from Rapido.
- Who
- Rapido, Zomato, Swiggy, and analysts from Kotak Institutional Equities.
- What
- Rapido's launch of a food delivery service with low commissions and its challenges in competing with established companies.
- When
- The launch of the food delivery service and analysis by Kotak Institutional Equities.
- Where
- India (specifically the food delivery market).
- Why
- To assess Rapido's potential in the food delivery market and its ability to compete with established players.
Rapido's Strategy
Analyst's Concerns
Commission vs. Customer Acquisition
Rapido's Strategy
Rapido plans to use low commissions as its key differentiator.
Analyst's Concerns
Analysts believe low commissions will not be enough, highlighting customer acquisition as a challenge
- Rapido's Commission Plan
- Flat fee of Rs 25 per order up to Rs 400, and Rs 50 for orders above.
- Zomato FY2020 Spending
- Approximately Rs 37 per order on discounts and other variable costs.
- Rapido's Rider Fleet
- 4 million riders
- Zomato & Swiggy Take Rate (FY26-30)
- 21% and 22.2-22.3%, respectively.