Rapido, a Bengaluru-based ride-hailing platform, has entered the food delivery sector with a low-commission model. Onboarding restaurants under a pilot project, the company has introduced a fixed rate system that undercuts leading platforms Swiggy and Zomato. This move on June 9, 2025, led to a decline in share prices of both Swiggy and Zomato-parent Eternal.
In a bold move to disrupt India’s food delivery sector, Bengaluru-based ride-hailing firm Rapido has launched a pilot food delivery service, charging lower commission fees than major players in the market. The initiative led to a noticeable dip in the shares of Swiggy and Eternal, parent company of Zomato.
According to sources close to the development, Rapido has begun onboarding restaurants under a structured commission system that charges ₹25 for orders below ₹400 and ₹50 for orders above ₹400. This translates to a commission rate of approximately 8–15%, which is significantly lower than the 15–30% rates reportedly charged by existing platforms.
The company has also requested partner restaurants to price items starting from ₹150 and has limited discounts to only those mutually agreed upon, indicating a partner-first approach. This strategy aligns with growing concerns among small food businesses over steep delivery and marketing charges by incumbents.
As of June 9, Swiggy’s share price fell by 2.5%, while Eternal, Zomato’s parent company, saw a nearly 2% decline—both snapping their multi-day winning streaks. The market responded quickly to the rising competition introduced by Rapido’s value-driven entry.
Rapido, primarily known for its two-wheeler ride-hailing services across Indian metros, is expected to test its food delivery operations in select cities before scaling. The company’s expansion marks a strategic shift into adjacent consumer tech verticals, broadening its service portfolio.
Swiggy and Zomato currently dominate India’s food delivery market. However, Rapido’s competitive pricing model could stir changes in restaurant partnerships and consumer preferences, especially among smaller food outlets seeking fairer commissions.
With this pilot initiative underway, the Indian food delivery landscape is poised for potential transformation, as newer players enter the space with alternative business models focused on affordability and collaboration.
