- Rapido launched Ownly, a food delivery app focusing on affordable meals in parts of Bengaluru
- Most 'Ownly' food items are priced around Rs 150, with essentials under Rs 100
- Rapido uses a zero-commission model for restaurants, unlike Swiggy and Zomato’s 16-30% fees
Ride-hailing service Rapido has now ventured into the food delivery industry with the launch of Ownly, a stand-alone app designed to provide customers with affordable meals.
Available in Bengaluru's Koramangala, HSR Layout, and BTM Layout, Ownly has made affordability its core value with most items priced around Rs 150 and necessities such as chapati, rice, and eggs for less than Rs 100.
The app currently offers food items from Faasos, Krispy Kreme, Wow! and EatFit, according to NDTV Profit.
Rapido's approach is based on a zero-commission model for eateries. This is in stark contrast to Swiggy and Zomato's usual commission rates of 16 to 30 per cent.
This concept is supported by a tiered flat delivery fee system: the restaurant partners will cover the delivery cost for any orders within a usual radius of four kilometres or less, as previously discussed between the National Restaurant Association of India (NRAI) and Rapido.
Delivery fee, however, will be Rs 10 if the order value is Rs 100 or less, and customers will need to pay Rs 20 here. The delivery fee will be Rs 25 along with a flat GST payment when the order value is between Rs 100 and Rs 400. Furthermore, orders above Rs 400 will incur a delivery fee of Rs 50, according to Business Standard.
Zomato and Swiggy continue to dominate India's $8 billion food delivery sector, handling over 4.5 million deliveries daily and 95 per cent of orders. But the two food delivery giants have come under fire from restaurants for hefty commissions and preferential treatment.
As eateries increasingly bristle at high commission fees and customers seek more cost-sensitive options, Rapido's arrival may challenge the Zomato and Swiggy duopoly. The business has also worked with the NRAI to finalise terms with partners, such as listing at least four dishes on the platform that cost less than Rs 150.
Ownly's affordability campaign is centred on Rapido's vast network of bike taxi riders. The company wants to minimise additional operational overhead and maintain quick delivery times by utilising its existing captains. Additionally, delivery zones are carefully chosen to ensure prompt service and lower fuel costs.
With 30 million monthly active users and 4 million monthly rides in more than 500 cities, Rapido intends to use its current network of bike taxi riders to fulfil food orders. With rising platform fees and restaurant markups discouraging price-conscious consumers, the company aims to attract them by lowering the total cost of access to food available online.
