What is the story about?
What's Happening?
Rapido, a ride-hailing platform in India, has begun beta testing its food delivery service in Bengaluru, aiming to compete with market leaders Swiggy and Zomato. The service, named Ownly, is being tested in three localities in Bengaluru and offers food at lower prices than competitors by not taking commissions from restaurants. Rapido has created a subsidiary, Ctrlx Technologies, to manage the food delivery service. The move comes as Swiggy, a minority stakeholder in Rapido, reevaluates its investment due to potential conflicts of interest.
Why It's Important?
Rapido's entry into the food delivery market could disrupt the current dynamics dominated by Swiggy and Zomato. By offering lower prices and leveraging its existing fleet, Rapido aims to attract customers seeking affordable delivery options. This expansion reflects the growing competition in India's food delivery sector, which is projected to reach significant market value by 2030. Rapido's strategy could lead to increased competition, potentially benefiting consumers with more choices and better pricing.
What's Next?
Rapido may continue to expand its food delivery service to other cities, challenging established players like Swiggy and Zomato. The company might also explore partnerships or technological innovations to enhance its service. As Rapido's food delivery service grows, competitors may respond with strategic adjustments to maintain their market positions. The development could lead to further consolidation or diversification in the food delivery industry.
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