Rapido Enters Food Delivery With Zero Commission
Rapido is launching a zero-commission food delivery app called Ownly, starting in Bengaluru. The move bets on transparent pricing to challenge incumbents like Zomato and Swiggy, signaling a potential disruption in hyperlocal unit economics beyond just groceries.
Rapido's zero-commission strategy directly targets the primary pain point for restaurants on existing platforms: high commission fees. Competitors like Zomato and Swiggy typically charge restaurants commissions ranging from 15% to 30% on each order. This move is designed to attract restaurant partners who have been critical of the margin erosion caused by the incumbent duopoly's fee structures. The Ownly app launched in Bengaluru following a year-long pilot in key neighborhoods like Koramangala, HSR Layout, and BTM Layout. The company claims to have already onboarded nearly 20,000 restaurant partners for its city-wide rollout. This initial traction was likely fueled by discussions with industry bodies like the National Restaurants Association of India (NRAI), which has been actively seeking alternatives to the high fees of other platforms. Instead of charging restaurants, Ownly's model places the logistics cost directly on the consumer through a transparent delivery fee. This unbundling of the food cost from the delivery cost allows restaurants to offer their regular menu prices, eliminating the need to inflate prices to cover commissions. To highlight this, Ownly launched a satirical marketing campaign titled the "Food Promise" to criticize hidden fees and price mark-ups on other platforms. This venture is a significant ecosystem expansion for Rapido, leveraging its extensive existing network of two-wheeler "Captains" to handle deliveries. This provides a substantial logistical advantage and a lower barrier to entry compared to a newcomer building a delivery fleet from scratch. The success of this model in Bengaluru is seen as a precursor to a potential expansion into Tier 2 and Tier 3 cities, where Rapido already has a strong presence in mobility services. The competitive landscape for food delivery is intensifying, with Walmart-owned Flipkart also reportedly considering an entry into the market. Rapido's founder, Aravind Sanka, has emphasized that Ownly aims to create a "restaurant-first" ecosystem built on fairness and transparency. The long-term viability will depend on whether the delivery-fee-only model can be sustained and if it's compelling enough to change consumer behavior accustomed to discounted deliveries.