Rapido’s Ownly Food Delivery in Bengaluru Starts at Lower Prices
Rapido, the popular ride-hailing platform in India, has quietly entered the food delivery market. The Bengaluru-based startup has started beta testing its new service, Ownly, in select parts of the city.
Testing in Key Bengaluru Localities
Ownly is now operational in Byrasandra, Tavarekere, Madiwala (BTM) Layout, Hosur Sarjapura Road (HSR) Layout, and Koramangala. The service offers food from nearby restaurants at around 15% lower prices than Swiggy and Zomato.
The lower cost comes from Rapido’s fixed-fee per order model instead of charging restaurants commissions of up to 30%.
A New Subsidiary for the Food Delivery Push
Rapido has launched Ownly through a wholly owned subsidiary, Ctrlx Technologies, with co-founder and CEO Aravind Sanka and vice president of finance Vivek Krishna as directors.
According to Sanka, there is no specific reason for setting up the subsidiary, but industry watchers believe it could help avoid potential conflicts of interest with Swiggy. Swiggy currently holds a 12% stake in Rapido.
Swiggy Relationship Under Review
Swiggy recently told shareholders it will review its investment in Rapido due to a potential conflict of interest. While Rapido has delivered for Swiggy in the past, the agreement allows it to use operational data, such as peak hours and high-demand restaurants, for its own services.
However, the agreement bars Rapido from signing contracts with Zomato or other direct competitors.
Using an Existing Fleet for Deliveries
Rapido operates a fleet of around 10 million vehicles in India, with 5 to 6 million being two-wheelers. This fleet is now delivering food alongside the company’s taxi and courier services.
The company plans to avoid listing restaurants far from customers to cut fuel costs and speed up deliveries. Menus will be curated to balance variety and margins.
Learning From Past Experience
While delivering for Swiggy, Rapido gained valuable insights into delivery patterns, high-demand areas, and restaurant preferences. This knowledge is now being used to streamline Ownly’s operations.
Founded in 2015, Rapido began as a bike taxi aggregator and later expanded into auto rickshaws, parcel delivery, cabs, and logistics. In 2023, it entered the cab market with a subscription-based model to compete with Uber and Ola.
Expanding in a Booming Market
India’s food delivery market is projected to exceed ₹2 trillion (about $23 billion) by 2030. Zomato leads with a 58% market share, followed by Swiggy at 42%. Uber exited the segment in 2020 by selling Uber Eats to Zomato.
Rapido has raised $574 million over 13 funding rounds and operates in more than 250 cities, handling over 3.5 million rides daily. Key investors include Prosus, WestBridge Capital, Nexus Venture Partners, and Think Investments.
