Zomato, Swiggy Have A New Competitor Now! Rapido To Start Food Delivery Service At Lower Commissions

While Zomato and Swiggy charge commissions from 16 per cent to 30 per cent per order, Rapido has reportedly finalised partnership terms that cap commissions between just 8 per cent and 15 per cent.

The firm plans to charge a flat fees of Rs 25 for orders below Rs 400 and Rs 50 for orders above Rs 400, the report noted.

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Rapido, best known for offering its bike taxi services, is now entering India’s online food delivery market, going directly up against established players like Zomato and Swiggy. But it isn’t just another competitor in the business; it aims to help restaurants by offering them a better deal, media reports said.

While Zomato and Swiggy charge commissions ranging from 16 per cent to 30 per cent per order, Rapido has reportedly finalised partnership terms that cap commissions between just 8 per cent and 15 per cent, almost cutting the cost in half, stated The Economic Times.

A Boost for Small Restaurants

This move could be a major relief for small restaurants, many of which have voiced their concerns over high delivery fees, hidden charges and unsustainable ad spends on existing platforms which leave them with little to no money left for themselves.

Citing sources in the know, the news organisation reported that the service is expected to roll out in Bengaluru by the end of June or early July, with food orders available directly on the Rapido app.

Partnership With NRAI

This service will be launched in partnership with the National Restaurants Association of India (NRAI). The firm plans to charge a flat fees of Rs 25 for orders below Rs 400 and Rs 50 for orders above Rs 400, resulting in commission rates between 8 per cent and 15 per cent, nearly half of what Zomato and Swiggy currently charge, the report noted.

According to NRAI President Sagar Daryani, the plan being discussed is more economically fair and addresses a key concern of restaurants, which is, the need for more control over their customer data, which they claim is masked by larger platforms leaving them with bare minimum access.