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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Rapido Traffic Charge: Ride-Heling App Rapido has launched a new charge system, which has shocked the passengers. Now if there is more traffic during your ride and there is a delay in the journey, then you will also have to bear the expenses. On traffic delay of more than 10 minutes, an additional fee of Rs 0.50 will be charged every minute, the maximum limit has been fixed at Rs 30.

Heavy resentment among consumers

There is an atmosphere of resentment against Rapido in cities like Bengaluru regarding this decision. Many users have described this rule as “inappropriate” and “exploitative”. He has raised the question that when traffic is not under his control, then why is the charge being charged for him?

Traffic is not my fault

Talking to The Hindu, Pavitra Rao, a resident of Hebbal, said that he had already given a tip of Rs 40, but still he had to pay an additional fee due to traffic. He said, “The driver should get a remuneration, but it is wrong to take charge of what is not in the bus of the passenger. It seems like a forced recovery.”

First tipping dispute, now uproar on traffic charge

Recently, questions were also raised about tipping on Rapido, when the company started giving option of ‘Tip’ while booking the ride. Regarding this, Consumer Affairs Minister Prahlad Joshi had instructed the CCPA (Central Consumer Protection Authority) on May 21 to investigate. After this, Rapido, Ola and Uber changed the language to “add more (voluntary)”, but users say that the experience is still the same.

Trust is breaking

People say that these platforms are now earning money from the situation which are not in the hands of the customer. This is a matter of ending the trust. In such cases, regulators should intervene so that transparency remains.

CCPA investigation continues

Currently, CCPA is reviewing the entire matter, but no official statement has come from Rapido so far. Complaints of consumers are increasing and it is expected that the government will take strict action on this.

This step of Rapido is also in the circle of questions because now passengers have to pay the reasons which are not under their control? Consumers say that “If this trend starts, every traffic signal will be handed over a new bill.

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