Rapido's Ownly: The New Challenger Ready to Shake Up Food Delivery Giants

A new player has entered the high-stakes arena of Indian food delivery, and it's aiming directly for the thrones held by Swiggy and Zomato. Rapido, already a formidable name in bike taxis and auto services, has unveiled 'Ownly' – its ambitious foray into the food delivery market. Launched initially in Bengaluru, Ownly isn't just another app; it's a strategic move designed to disrupt the existing ecosystem by offering a compelling alternative to restaurants grappling with high commission rates.

Ownly’s core proposition is its revolutionary commission structure.

For the inaugural month, restaurants onboarded onto the platform will enjoy a blissful 0% commission on all orders. Following this honeymoon period, the commission rate will settle between a modest 10-12%. This stands in stark contrast to the hefty 18-25% commissions typically levied by the dominant players, Swiggy and Zomato, a burden that has long squeezed profit margins for eateries across the country.

This significantly lower take-rate could be a game-changer, especially for small and medium-sized restaurants looking to increase their profitability.

Rapido's strategic advantage lies in its extensive network of over 500,000 active bike captains. These logistics backbone, already well-versed in last-mile delivery, can be seamlessly integrated into Ownly's operations, providing an immediate and scalable delivery infrastructure.

This existing fleet dramatically reduces the initial overheads and logistical complexities that new entrants usually face. The company’s move into food delivery isn't entirely unexpected; it aligns with a broader trend among mobility companies to diversify their offerings and leverage their existing assets to tap into new, lucrative markets.

The food delivery market in India is a colossus, valued at billions of dollars and still growing.

However, despite its size, the landscape has been largely dominated by a duopoly. Ownly's entry introduces a much-needed competitive spark, potentially forcing established players to re-evaluate their pricing strategies and service models. For restaurants, this could translate into better bargaining power and a fairer share of the revenue generated through online orders.

However, the road ahead for Ownly is not without its challenges.

While lower commissions are a strong draw for restaurants, attracting a substantial customer base will be crucial. Swiggy and Zomato have spent years building brand loyalty, investing heavily in marketing, and developing sophisticated user experiences. Ownly will need to convince consumers to switch or add another app to their repertoire, offering compelling incentives, reliable service, and a diverse selection of restaurants.

The success will hinge on whether it can effectively bridge the gap between attractive restaurant offerings and consistent consumer demand.

Market analysts are watching closely. While the initial phase of 0% commission is undoubtedly enticing for restaurants, the real test will come after the first month, when the 10-12% rate kicks in.

Will restaurants remain loyal? Can Ownly maintain its service quality and expand its reach beyond Bengaluru? The answer to these questions will determine if Rapido's Ownly truly has the recipe to carve out a significant slice of the Indian food delivery pie and transform the competitive landscape forever.