🔥 1. The Setup: A Duopoly Under Pressure
For years, Zomato and Swiggy have dominated India’s $2.5B+ food delivery market.
Commission: 16-30% per order
Ad Costs: â‚ą20-â‚ą30+ per order to stay visible
Data Control: Platforms own customer data
Restaurant Pain Points: High fees, low margins, limited control
But cracks are showing, especially among independent restaurants that can’t afford to keep paying up.
🧨 2. Enter Rapido: The Cost-Slayer
Rapido, known for its bike ride-hailing service, is now making a serious move into food delivery with one killer weapon:
👉 Ultra-low platform fees.
Rapido’s Pricing Model:
8–15% commission (vs. Zomato/Swiggy’s 16–30%)
Flat fee of â‚ą25 (<â‚ą400 orders)** or **â‚ą50 (>â‚ą400)
No hidden ad costs
Restaurants retain ownership of customer data
This isn’t just cheaper, it’s a direct assault on the economics of the current model.
📉 3. Why This Hurts Zomato & Swiggy
Let’s break it down:
Avg. Commission
Z/S 20–30%
R 8–15%
Ad Spend
Z/S ₹20–₹30/order
R None
Rider Network
Z/S In-house
R Already exists (and even used by Swiggy)
Data Ownership
Z/S Platform-controlled
R Restaurant-accessible
Rapido isn’t just undercutting fees, it’s offering a transparent , cost-efficient alternative that aligns better with small restaurant margins.
đź’Ł 4. Real-World Impact: Restaurants Are Revolting
More than dissatisfaction, this is a revolt .
Examples:
The Garlic Bread Co.: Paid over â‚ą30 per order in ads on Zomato
Saffroma (NCR): Quit Zomato after “mystery charges” and unapproved spends
With Rapido’s model, restaurants can:
Improve profit margins
Regain pricing control
Build long-term customer relationships via owned data
🚀 5. Execution Edge: Rapido Isn’t Starting from Scratch
Unlike new entrants, Rapido has:
An existing rider network
Active delivery operations (already contracted by Swiggy)
NRAI backing, giving instant credibility with restaurants
Phase-wise rollout starting from Bengaluru
They’re not building infrastructure, they’re repurposing it.
Fast. Lean. Smart.
⏳ 6. What Comes Next?
Zomato and Swiggy aren’t going away, but their pricing power is under threat .
If Rapido gains traction:
More restaurants will shift platforms
Delivery fees may drop across the board
Customers could see lower menu prices
Monopolistic grip of top platforms begins to loosen
🧊 Bottom Line: This Isn’t Just Competition, It’s Disruption
Rapido isn’t trying to compete.
It’s trying to redefine how food delivery works in India and in doing so, it’s quietly killing the old duopoly playbook.
One bite. At. A. Time.
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