Ride-hailing app Rapido is reportedly close to launching its own food delivery service called ‘Ownly’. This platform will go head to head with Zomato and Swiggy in the Indian market. The company is expected to begin testing the platform in Bengaluru first, starting from sometime in June-end or early July. The Indian food-delivery market is ruled by the duo and Rapido looks to disrupt this space by charging no commission or platform fee from restaurants.
Ownly’s proposal pitch accessed by CNBC suggests that Rapido is looking to launch a low-cost and transparent food delivery ecosystem. While Zomato and Swiggy charge commission from restaurants on every order, Rapido’s platform looks to charge no commission or platform fee. Instead, Rapido is reported to charge a subscription fee from partner restaurants. It is looking to ask for Rs. 25 for orders worth Rs. 400 and belwo and Rs. 50 for orders worth above Rs. 400.
The proposal by Rapido also pushes for no price parity with dine-in and delivery menus. Calling it ‘Offline price = Online price’, it asks restaurants to not charge packaging fees or elevate dish prices. Currently, most restaurants charge more for food on Zomato and Swiggy than what it actually costs at the restaurant. Rapido looks to change that with Ownly.
Delivery cost will also be reportedly subsidised. Rapido will charge a flat delivery charge of Rs. 25 plus GST on orders above 100, while the customers will only pay Rs. 20. For orders below Rs. 100, Rapido will only charge Rs. 10 delivery fee. The pitch suggests that the restaurant is also given the option to use its own delivery fleet to surpass the fee. Alternatively, it can tap into Rapido’s two-wheeler network if it doesn’t have its own network.
Furthermore, the proposal also states that Rapido is asking restaurants to offer at least four meals that will be priced below Rs. 150. This meal should fill up a single customer at least and the company looks to push ‘value meals’ and will highlight it prominently within the app.
