Rapido’s Entry Into Food Delivery Challenges Zomato And Swiggy’s Market Dominance

Rapido’s Entry Into Food Delivery Challenges Zomato And Swiggy’s Market Dominance  

Rapido, the ride-hailing startup, is preparing to enter the food delivery market, potentially disrupting the duopoly of Zomato and Swiggy. The company is in discussions with restaurant owners to develop a business model that challenges existing commission structures, aiming to provide a more cost-effective alternative for food vendors and customers.  

Market Disruption And Competitive Landscape  

- Zomato and Swiggy currently dominate India’s food delivery industry, holding a combined market share of approximately 100 percent  
- Rapido’s entry could introduce pricing competition, particularly in commission rates, which have been a point of contention between aggregators and restaurants  
- The company already operates a B2B logistics arm that provides delivery services to Swiggy and the Open Network for Digital Commerce  

Rapido’s Expansion Strategy  

- The startup plans to scale its operations from 120 cities to 500 by 2025, leveraging its existing two-wheeler fleet for food delivery  
- Rapido has raised significant funding, including 30 million dollars in February 2025 and 200 million dollars last year, bringing its valuation to 1.1 billion dollars  
- The company handles between 3.2 to 3.5 million rides daily, demonstrating its logistical capability to support food delivery operations  

Industry Perspective  

Rapido’s potential entry into food delivery comes at a time when the sector is experiencing slower growth and disputes over high commission rates. If successful, the move could reshape India’s food delivery landscape, offering restaurants and customers a viable alternative to existing platforms.  

Sources: Trade Brains, Inc42, Flickonclick.