Rapido, the popular bike taxi platform, is preparing to launch a food delivery service through a pilot program in Bengaluru. With backing from WestBridge Capital, the company aims to capitalize on the growing demand for quick-service restaurant (QSR) deliveries while utilizing its existing logistics capabilities.
Partnerships with Major Restaurant Chains
Rapido plans to partner with well-known restaurant chains such as McDonald’s, KFC, and Pizza Hut, along with high-frequency cloud kitchens. The initial focus will be on short-distance deliveries, targeting orders from outlets within 5 kilometers in major cities. This approach will help Rapido capture a significant share of orders from large chains while offering consumers more choices through smaller outlets.
Subscription-Based Delivery Model
Differentiating itself from competitors like Zomato and Swiggy, Rapido will implement a subscription-based model for restaurants. This model involves charging a fixed periodic fee for the subscription, along with a per-order delivery charge, instead of taking a commission from each order. The goal is to reduce costs for restaurants, which could potentially lead to lower prices for consumers.
Strategic Growth and Diversification
Rapido’s move into food delivery aligns with its broader strategy to explore new growth opportunities. Having already reached $1 billion in gross merchandise value in the last fiscal year, the company is now focused on targeting consumers with lower average order values (AOVs), around Rs 250 or less. This entry into the food delivery space also fits into Rapido’s plans to diversify into areas like insurance distribution, aiming to offer a competitive alternative in the evolving market.
