Hello, followers! Today, let’s dive into some exciting tech news about Rapido expanding into food delivery in India.

Rapido, a well-known ride-hailing company in India, has quietly started testing its food delivery service in Bengaluru. This move marks its strategic attempt to take on dominant players like Swiggy and Zomato in a rapidly growing market.

The startup has launched the beta version of its food delivery app called Ownly, initially operating in three neighborhoods of Bengaluru: Byrasandra, Tavarekere, Madiwala (BTM) Layout, HSR Layout, and Koramangala. Co-founder and CEO Aravind Sanka confirmed the trial, and the company set up a subsidiary, Ctrlx Technologies, to handle this new venture.

Interestingly, the subsidiary’s creation might be a tactic to avoid conflicts of interest, since Swiggy holds a minor stake in Rapido. Swiggy has also expressed intentions to reassess its investment due to potential future conflicts. Meanwhile, Ownly’s app offers food from nearby restaurants at about 15% lower prices than competitors, thanks to their model of not taking restaurant commissions but charging a fixed fee per order.

The app’s pricing advantage stems from the absence of the typical 20-30% commission, favoring both restaurants and consumers. By leveraging data from its partnership with Swiggy, Rapido is optimizing delivery routes and curating menu options to maximize profits while maintaining good discoverability for users.

This expansion follows Rapido’s journey since 2015, evolving from bike taxis into a multi-service platform, including auto rickshaws, parcel delivery, and now food delivery. It operates in over 250 cities with millions of rides daily and has recently secured a unicorn status with significant funding backing.

India’s online food delivery is projected to surpass $23 billion by 2030, with Zomato leading at 58% market share and Swiggy holding around 42%. Rapido’s entry into this arena signifies a notable shift, especially with its fixed-fee model, potentially disrupting the current competition.