Swiggy shares fell over 2% on June 10, trading at ₹356, while Eternal—parent company of Swiggy and Zomato—dropped more than 1% to ₹254. This marks the second consecutive day of losses for both stocks.
Why? Buzz is growing around Rapido’s quiet but bold move into the food delivery scene. The bike-taxi app has reportedly started onboarding restaurants in Bengaluru for a pilot project—and they’re offering commissions as low as ₹25. That’s nearly half of what Swiggy and Zomato charge.
For context, Swiggy and Zomato typically charge 15–30% commission per order. Rapido is starting at just ₹25 per order below ₹400 and ₹50 for anything above ₹400. That means commission rates between 8–15%, a serious threat if scaled properly.
But investors aren’t celebrating. They’re spooked.
Karan Taurani, EVP at Elara Capital, said both Swiggy and Zomato could face up to 20% valuation cuts if Rapido pulls this off well. And that’s a big “if.”
Rapido’s Secret Weapon: 4 Million Riders
Here’s where it gets interesting. Rapido already has a fleet of 4 million two-wheeler riders across India. That gives it a logistical edge in reaching kitchens and customers fast.
But the challenge? Execution.
“Unless Rapido nails the user experience,” Taurani told CNBC-TV18, “it won’t scale.” And let’s be real—Indians don’t wait patiently for their butter chicken.
Also Read Premier Energies: Rs 2,629 Cr Block Deal at 1% Discount—Time to Exit or Buy the Dip?
Zomato’s Extra Charges Add to the Drama
At the same time, Zomato is asking restaurants to cough up more money through a new ‘long distance fee’. If your order is delivered more than 4 km from the kitchen, the restaurant pays ₹20–₹40 extra per order.
Add that to already high commissions, and it’s no wonder restaurants are eyeing alternatives.
Blinkit’s License Blunder
As if the food-tech space wasn’t spicy enough, a Blinkit-affiliated dark store in Pune was shut down by Maharashtra FDA for operating without a food safety license. (Blinkit, in case you forgot, is owned by Zomato.)
When it rains, it pours.
The Bottom Line
Swiggy and Zomato have enjoyed a near-monopoly on India’s food delivery for years. But Rapido is threatening to gate-crash the party—with a leaner model and fewer fees.
It’s early days, but if Rapido gets the food and the delivery right, the big boys might just lose their appetite.
Also Read India’s IT Uprising: 7 New Giants Break Into the Billion-Dollar Club
