Rapido, a bike taxi platform, is preparing to launch a food delivery service in Bengaluru soon. The company, backed by WestBridge Capital, aims to meet the growing demand for fast food deliveries while using its existing delivery expertise.
Targeting Big Restaurant Chains
Rapido plans to team up with popular restaurant chains like McDonald’s, KFC, and Pizza Hut, as well as cloud kitchens that serve food quickly. The company will focus on delivering food within a 5-kilometer radius from busy restaurants in major cities. This will help Rapido grab a significant share of food orders from big brands, while also offering customers more options from smaller outlets.
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Subscription-Based Delivery Model
Unlike its competitors, Zomato and Swiggy, Rapido will use a subscription-based model for restaurants. Instead of charging a percentage commission on every order, Rapido will ask restaurants to pay a fixed monthly fee and an additional delivery fee for each order. This model is expected to help restaurants save money, and they could even pass on these savings to customers.
Rapido is looking to grow its business, especially after reaching $1 billion in sales last year. Even though the food delivery market is not growing as fast as before, Rapido plans to attract customers who spend less per order (around Rs 250). This move is part of Rapido’s bigger strategy to expand its services, which might also include insurance distribution in the future. By entering the food delivery space, Rapido hopes to offer a fresh alternative to the well-established players like Zomato and Swiggy.
