Ride-hailing platform Rapido is set to enter the food delivery business with the launch of a new online platform called Ownly, which will operate on a zero-commission model, charging restaurants a flat subscription fee.
It has also entered into a non-exclusive partnership with the National Restaurant Association of India (NRAI), which represents over 50,000 eateries across the country.
Rapido Ownly
Rapido Ownly will allow customers to browse and order from restaurants.
The mobility startup has planned to begin its pilot in select areas of Bengaluru by the last week of June or the first week of July.
Restaurants will not be permitted to add packaging charges separately, and pricing across online and offline channels will be kept uniform.
Customers will pay only the listed price plus GST—no platform or restaurant mark-ups. “The price of a dish (excluding GST) is the final price the customer pays. There is no other addition from us or a restaurant partner,” the terms and conditions (T&C) state.
As per the agreed terms, restaurant partners will bear the delivery fee for all orders within a standard radius of 4 km.
Business Standard has reviewed a copy of the T&C between the two platforms.
Rapido's strategy is that online prices are at par with prices offline. “We will only be looking to work with partners who can commit to this stand of honest pricing,” Rapido said in its proposal.
The company is going to work with zero commissions on food delivery, not allowing restaurants to charge packaging costs separately and not leveraging discounts/advertisements as a push to acquire customers, as per the document.
As per the report, for orders valued at ₹100 or less, the delivery cost will be ₹10, of which the customer will pay ₹20. For orders above ₹100 and below ₹400, the delivery cost will be ₹25 plus applicable GST. For orders exceeding ₹400, the cost rises to ₹50.
NRAI president Sagar Daryani speaks
Welcoming more players in the food delivery space, Sagar Daryani, president of NRAI, said, “From what we feel, Rapido has shared a proposal with us that is economically viable and democratic. In principle, they have even agreed to share the consumer database with us. The market will only grow if food becomes cheaper. When food is more affordable, our pricing comes down, and we get more business.”
Daryani added that the NRAI will continue operating with other platforms such as Swiggy, Zomato, and ONDC.
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