Rapido Eyes ₹250-AOV Market with New Food Delivery Pilot

Rapido, the bike taxi app you’ve probably seen zipping through city traffic, is now taking a bite out of the food delivery business. The Bengaluru-based company is all set to pilot its new food delivery service in its home turf over the next few weeks, according to people familiar with the plan.

And this isn’t just another Swiggy or Zomato clone. Rapido is trying a different route—literally and strategically.

Big Brands, Short Distances

Rapido is reportedly teaming up with big names like McDonald’s, KFC, Pizza Hut, and popular cloud kitchens. The idea is to focus on high-frequency, short-distance deliveries—think under 5 km. That means your fries might reach you faster than ever before.

“These big chains already have dense outlet networks in cities. Rapido’s starting with them to test the waters,” said one source. Smaller restaurants offer variety, sure, but big chains bring in bulk orders—and that’s what Rapido wants to crack first.

Now here’s where it gets interesting: unlike Zomato and Swiggy, which charge restaurants a commission per order, Rapido plans to use a subscription model. Restaurants will pay a fixed fee to be on the platform, plus a flat delivery fee per order.

Why does that matter? For one, restaurants won’t have to inflate their prices to cover high commissions. That could mean cheaper food for you and me. “A lot of places quietly hike menu prices on food apps to offset commissions,” said someone familiar with the strategy. “With Rapido’s model, they might not have to.”

Targeting the ₹250 Crowd

While Zomato and Swiggy see average order values (AOV) of ₹400–₹450, Rapido is eyeing the more price-sensitive crowd with AOVs closer to ₹250. That’s a smart play—there’s a massive base of users who want quick meals without breaking the bank.

Let’s face it—ride hailing isn’t expanding like it used to. While the company has built a strong presence with bikes, autos, and even cars, the overall market has started to plateau. That’s likely why the company is now exploring new growth avenues.

After raising $200 million in funding last year (led by WestBridge Capital), Rapido is now looking beyond rides. Food delivery and insurance distribution are both on its radar. And with over $1 billion in GMV already, the company clearly has scale on its side.

Here’s the thing: Rapido’s jumping into food delivery just as the sector is cooling off a bit. Zomato CEO Deepinder Goyal even admitted recently that the segment is facing “systemic issues.” Growth has slowed, and newer players like Blinkit, Zepto, and Swish are crowding the space with 10-minute delivery promises.

According to brokerage firm Bernstein, Zomato holds 57.1% of the market, with Swiggy covering the remaining 42.9%. And fun twist—Swiggy is actually one of Rapido’s investors, alongside Dutch giant Prosus. So, things could get complicated fast.