By Admin 
Rapido, known for bike taxi service, has now landed in the food delivery ground. The company has started this service by activating its 40 lakh rider network (almost zero additional expenses). Due to this, the alarm bell has been rang for legendary players like ZOMATO (now Eternal) and Swiggy.
ZOMATO and Swiggy’s earnings impact
According to Elara Securities report, if Rapido applies its plan correctly and extensively, it can damage the stable revenue models and profits of Zomato and Swiggy. Zomato and Swiggy have been doing food delivery for the last decade and now they have set a target of 5 percent adjustable Ebitda. But Rapido’s fast entry can shake this stability.
Direct collision with cheap commission structure
Rapido’s commission structure can create a stir in the market. While ZOMATO and Swiggy take 21-22 percent commission from the restaurant partners, Rapido will collect only 8-15 percent. Not only this, there will be a delivery fee of Rs 25 on orders less than Rs 400 and Rs 50 on orders of more than Rs 400. This service will start as a pilot project from Bengaluru.
Strong grip in rider network
Rapido has 40 lakh rider with 30–35 lakh daily rides. In comparison, Eternal (Zomato) has 4.4 lakh and Swiggy has 5.3 lakh riders. That is, Rapido is already in a very strong position in last-mile delivery.
One app, three tasks
Rapido’s plan is not just food delivery. Ride, parcel and food delivery will be merged through the same app. This will not only increase the earnings of riders, but will also reduce logistics expenses. The algorithm will decide which rider can, where and what to deliver so that it can earn more in the least distance.
What can be challenges?
Elara’s report also states that Rapido does not have a dedicated fleet for food delivery, which can affect the quality of orders with delivery (less than 30 minutes) in a short time. This is the reason that even new players like ONDC and Ola have not been able to move much further.
Can Rapido become a gamechanger?
However, if Rapido continuously shows better execution and scale performance, it can break the monopoly of zomato and swiggy. It has a compensation of cheap commission, tremendous network and technology and if all this works properly, then a new player may soon be seen ruling in the world of food delivery.
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