New Delhi: Rapido is changing the way the customers are ordering the food from online app aggregators. It is coming with the new platform by the name “Ownly” to distort the market duopoly of Swiggy and Zomato. Rapido is expected to launch its pilot project in Bengaluru. “Every person should have the luxury of choice and the ability to order a reasonably priced meal,” said the company in its statement as it aims to enter the food delivery market.
The development has come in the backdrop of several restaurateurs complaining about the malpractices of Swiggy and Zomato, such as high commissions, preferential treatment, and higher customer acquisition costs (CACs). These irritants are forcing restaurant owners to look for some other alternatives, which Ownly aims to fulfill. Previously, Thrive, a Coca-Cola-backed brand, attempted to deliver food and posed itself as a challenger to the duopolist, but to no avail, as Thrive had to shut its operations.
ONDC (Open Network for Digital Commerce), a government-backed open commerce platform; Magicpin (Zomato-funded); Zepto Cafe; Blinkit Bistro; Swish; and many more are mushrooming in the food delivery ecosystem, but hardly anyone challenges and disrupts the duopoly of Zomato and Swiggy. Zomato boasts of 2.5 million food deliveries each day, and Swiggy over 2 million. Altogether, these two companies acquired 95 percent of the Indian food delivery industry, which is over $8 billion USD in market size.
Ownly, Rapido’s food delivery platform
Rapido, in its pitch, aims to become a strong challenger given its success in distorting the Ola-Uber duopoly in the cab market. Rapido, which boasts of 4 million rides in 500 cities and having 30 million active users, plans to devise a strategy around how the online prices are in sync with offline prices. Simply put, the customer needs to pay online the amount that the restaurant is charging in its physical space. With honest pricing in mind, the company plans to work with restaurateurs in ensuring the same price through zero commissions. Rapido would be charging zero commission along with zero packing charges and with no platform and zero delivery fees. In lieu of that, It would introduce a minimal layer of cost so restaurants can price their products at a reasonable price
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. Offline price = Online price,” said a document of Rapido. The aggregator would be charging a flat delivery fee of Rs 25 along with GST for a standard 4 km radius ride for orders above Rs 100. For the remaining order, delivery fees would be around Rs 20 plus GST. The delivery cost is to be borne by the restaurant owners only, as per the company documents. Currently, Swiggy and Zomato charge various fees, such as platform fees, delivery fees, packaging charges, and further GST on such fees, which add up to a final price and thus prevent customers from ordering it.
“We believe that food continues to get more expensive online. As a result, a bulk of Bharat has been locked out of using online delivery platforms,” said Rapido’s proposal document.The company is betting on affordable food options that would attract more users.
Rapido’s new food delivery platform, Ownly, aims to challenge the dominance of Swiggy and Zomato in India. Ownly will operate on a zero-commission model, charging only a flat delivery fee, making food prices online match offline prices. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
