Ride-hailing platform Rapido is reportedly gearing up to launch a pilot programme for quick food delivery services in Bengaluru, according to a report by The Economic Times citing sources familiar with the matter.
The company is said to be in active discussions with leading quick-service restaurant (QSR) chains such as McDonald’s, KFC, Pizza Hut, and other cloud kitchen operators with high order volumes. The initial focus is expected to be on delivering from larger restaurant chains within a short radius of up to 5 km, leveraging their dense network of outlets in major cities.
This move comes about a month after earlier reports indicated that Rapido was exploring opportunities to integrate food delivery services into its platform by partnering with restaurant brands.
“Zomato and Swiggy have average order values (AOV) around INR 400-450. Even though they have introduced lower-cost options to widen their customer base, there’s a significant consumer segment where AOVs are around INR 250 — a market that Rapido aims to target,” a source was quoted as saying.
The food delivery market has seen intensifying competition, with players like Swiggy and Zomato launching in-house quick food delivery brands like SNACC and Bistro, respectively, to capture a larger share.
Interestingly, Rapido had also explored entry into India’s quick commerce sector last year. Reports from The Times of India suggested that the Bengaluru-based company engaged with platforms like Zepto, Pincode, and KPN to assess its quick commerce strategy.
Currently, Rapido provides B2B logistics support for food delivery, working with partners like Swiggy and the government-backed Open Network for Digital Commerce (ONDC).
Meanwhile, on the ride-hailing side, Rapido has announced plans to expand its services to 500 cities across India, up from the current 120 cities.
On the financial front, Rapido reported a significant improvement in its performance in FY24, reducing its loss by over 45% to INR 370 crore, compared to INR 675 crore in FY23. Its operating revenue also grew 1.5X, reaching INR 648.1 crore in FY24, up from INR 443 crore in the previous fiscal year.