Ride-hailing platform Rapido is making a grand disruptive entry into the food delivery space, taking direct aim at Swiggy Ltd. and Zomato operator Eternal Ltd.
Rapido's new direct-to-consumer platform, which is test-piloting in Bengaluru, is designed to bypass traditional aggregator models that rely heavily on commissions and platform fees.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
According to Karan Taurani from Elara Capital, Rapido has two critical advantages: an existing delivery fleet and access to capital. "They have the last mile sorted, so customer experience can be on par with Swiggy. They also have the capital to invest in technology and promotions," Taurani told NDTV Profit.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
A detailed comparison of a McChicken meal order—researched and calculated by NDTV Profit—underscores Rapido's low-cost strategy:
Rapido's zero-commission approach and no packaging fees mean partner restaurants pay only delivery costs — either through Rapido's delivery partners or their own staff at zero extra cost. Customers pay no platform fees, no packaging fees and only the applicable GST.
Taurani noted that while Rapido's initial market-share impact will be limited, a potential 10–12% market-share gain could dent the revenue and valuation multiples of incumbents Swiggy and Zomato. "If Rapido executes well, we could see a 4–5% downside in target prices for these stocks in the near term," he said.
He also highlighted that the ability of Swiggy and Zomato to sustain deep discounts is constrained by their profitability focus. "Rapido has the room to burn cash, but for Swiggy and Zomato, cash burn would be more limited, given their valuation sensitivities," Taurani said.
As Rapido prepares to launch its pilot in July, industry watchers are keeping a close eye on whether this cost-cutting model can scale and disrupt the carefully built duopoly of Swiggy and Zomato.
For now, Taurani advises caution: "There's no proof of concept that Rapido will execute well in the food delivery segment, but it's definitely a development worth watching closely."
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
