Rapido To Launch Food Delivery Pilot in Bengaluru: Report

Ride-hailing platform Rapido plans to launch a pilot program for its food delivery service in Bengaluru in the next few weeks.

As reported by The Times of India, the WestBridge Capital-backed start-up is in talks with well-known restaurant chains like McDonald's, KFC, and Pizza Hut, as well as cloud kitchen services.

Rapido to enter food delivery space

Rapido’s target is delivering food within a 5 km radius. Reportedly, it is trying to collaborate with big restaurant chains to speed up deliveries and offer food for around Rs 250 per order, cheaper than Zomato and Swiggy. 

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“Initially, the focus will be on delivering from larger restaurant chains for shorter distances. These chains have some of the densest networks of outlets in top cities, enabling deliveries within a 5 km radius,” said one source to ET, who requested anonymity. “A significant portion of orders comes from these large chains, while the long tail of smaller outlets provides consumers with a broader choice.”

Earlier, Rapido planned to introduce meal delivery services on its app and was actively negotiating with restaurant partners.

Reportedly, the ride-hailing giant is in the process of developing a business model that challenges the commission-based structures of leading restaurant-aggregators Zomato and Swiggy.

“These are early discussions to explore whether Rapido can disrupt the Zomato-Swiggy duopoly. The company already provides delivery services for individual restaurants using its two-wheeler fleet,” a source said, noting that these plans are not yet finalised.

The company's current scenario

Rapido raised $200 million in a funding round led by existing investor WestBridge Capital, valuing at $1.1 billion. Nexus Venture Partners, new investors Think Investments, and New York-based Invus Opportunities also participated in the round.

Incidentally, Bengaluru-based Rapido already provides food delivery services for Swiggy and the government-backed Open Network for Digital Commerce (ONDC).

Swiggy is an investor in the ride-sharing company. However, since there was no exclusivity clause in the investment, Rapido is stepping into the food delivery space on its own.

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