Rapido food delivery app Ownly goes live in parts of Bengaluru

Mobility platform Rapido has launched a pilot of its standalone food delivery app Ownly in select neighborhoods like Koramangala and HSR Layout in Bengaluru, sources aware of the development told Entrackr. 

This development comes amid media reports claiming that Rapido has paused the pilot of its food delivery app due to procedural hurdles.

Team Entrackr successfully ordered a pizza in Koramangala through Ownly.

“The food delivery service will roll out to other parts of Bengaluru in the coming months, while expansion to cities like Delhi NCR and Mumbai will depend on its performance in Bengaluru,” said one of the sources, requesting anonymity.

The app will challenge the duopoly of Swiggy and Zomato by using Rapido’s large rider network for quick deliveries and offering transparent pricing with no inflated rates, packaging fees, or restaurant commissions. However, experts caution that high costs, intense competition, and operational challenges could make it difficult to dislodge the incumbents.

As per its finalised rate card with NRAI, Rapido will follow a three tier flat pricing model with Rs 20 for orders up to Rs 100, Rs 25 plus GST for Rs 100 to 400, and Rs 50 plus GST for above Rs 400, keeping restaurant commissions low at 8 to 15% compared to the usual 16 to 30%.

Meanwhile, Swiggy has indicated plans to exit its investment in Rapido, citing the changing dynamics of their business relationship. The Sriharsha Majety-led firm had led a $180 million funding round in Rapido in April 2022 and currently holds about a 12% stake in the company.