Archive · 11 Jun 2025
Analysts Doubt Rapido's Food Delivery Plans Against Giants
Imagine trying to start a new food delivery service like Zomato or Swiggy.
Rapido, a ride-hailing company, wants to do this by promising lower prices.
However, experts are worried.
They think it'll be tough because the current big companies have a lot of experience and money.
Rapido also needs to improve customer service and manage deliveries efficiently.
They're also not making a profit right now, which could make it hard to keep prices low.
They might not have enough customers or may have trouble in the food market with many small restaurants.
Rapido's food delivery service faces skepticism from analysts about long-term viability.
Rapido plans to leverage its existing rider fleet to offer lower commissions than Zomato and Swiggy.
Analysts cite challenges in customer experience, execution, and scaling in the food delivery market.
Rapido has yet to achieve profitability in its core business, raising concerns about funding food delivery.
Experts suggest Rapido might struggle to compete with established players due to structural market constraints.
- Who
- Rapido, Zomato, Swiggy, and market analysts.
- What
- Rapido faces challenges launching its food delivery service, Ownly.
- When
- Ongoing, with concerns raised about future viability.
- Where
- Focus on India, particularly in larger and tier-2 cities.
- Why
- To challenge existing food delivery services by offering lower prices and commissions.
Analysts
Rapido
Market Entry
Analysts
Significant hurdles exist in competing with established players like Zomato and Swiggy.
Rapido
Rapido aims to disrupt the market with a focus on efficiency and lower commissions.
Pricing Strategy
Analysts
Lower commissions might not be sustainable due to the need to cover costs and maintain profitability.
Rapido
Rapido hopes to attract restaurants with lower commission rates than competitors.
Infrastructure
Analysts
Current market leaders have made large investments in infrastructure.
Rapido
Rapido plans to leverage existing infrastructure, such as its fleet of riders.
- Existing Market Leaders
- Zomato and Swiggy
- Rapido's Value Proposition
- Lower Commissions
- Estimated Delivery Cost (Zomato/Swiggy)
- Rs 60 per order
- Proposed Delivery Cost (Rapido)
- Rs 50
- Zomato FY25 Restaurant Partners
- 314,000
- Swiggy Restaurant Partners
- 252,000