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Home » Rapido Starts Food Delivery with Zero Fees
News Update

Rapido Starts Food Delivery with Zero Fees

With a growing user base and a zero-commission model, Rapido aims to disrupt India’s food delivery sector, targeting cost-conscious users and challenging the dominance of Zomato and Swiggy amid a market slowdown
Athira SethuBy Athira Sethu8 April 2025Updated:8 April 2025No Comments2 Mins Read
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Rapido, known for its bike taxi and ride-hailing services, has announced its entry into India’s food delivery market. The company is introducing a zero-commission model, aiming to attract cost-sensitive consumers and first-time users. This strategic move mirrors its approach in the mobility sector, where it focused on low-cost services to build a large user base and increase transaction frequency.

Growing Network, Lower Costs
Rapido claims to have more users and drivers than food delivery giants Swiggy and Zomato. It plans to leverage this network to scale operations quickly. A key part of the strategy includes offering affordable delivery options, which could increase order volume and expand the market.

Fintech Ambitions
In addition to food delivery, Rapido is also branching into fintech. The company is reportedly setting up a separate subsidiary to manage financial services, hinting at a broader vision beyond logistics and delivery.

Market Conditions
Rapido’s entry comes at a time when the Indian food delivery market is under pressure. Growth has dropped below 20% year-on-year, with single-digit growth quarter-on-quarter. Bank of America recently downgraded its outlook for Swiggy and Zomato, projecting 2025 growth at just 16–17%, far below the previously expected 20%+ levels. Both companies have also suffered major declines in stock value this year.

Challenges for Established Players
Swiggy and Zomato face rising challenges:

  • Losses from their quick commerce operations
  • Tensions with restaurant partners
  • Backlash over 10-minute private-label food offerings
  • Legal disputes with restaurant associations at India’s competition commission

Positioning for Disruption
By offering a zero-commission model and utilizing its existing logistics infrastructure, Rapido is positioning itself as a disruptive force in the food delivery space. With established players facing mounting pressures, Rapido’s low-cost approach may appeal to both customers and restaurants looking for an alternative platform.

banner business Channel I Am food delivery India latest updates rapido startups swiggy TOP STORIES zomato
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