Rapido looks to take slice of food delivery sector as it gears up to challenge Swiggy, Eternal

Ownly will not charge restaurants any commission fees and has committed to maintaining price parity between dine-in and delivery orders
| Photo Credit:
Akhila Easwaran

Rapido, the ride-hailing platform, has launched ‘Ownly’, a zero-commission food delivery platform that promises to disrupt the duopoly of Swiggy and Zomato in the online food ordering space.

“We are a zero commission platform that believes in honest pricing – offline price equals online price,” the company stated. Unlike competitors, Ownly will not charge restaurants any commission fees and has committed to maintaining price parity between dine-in and delivery orders.

The Bengaluru-based start-up, which enables 4 million rides daily across 500 Indian cities and serves 30 million active customers monthly, is positioning Ownly as a transparent alternative to existing platforms that typically charge restaurants 15-25 per cent commission on orders.

Cross-subsidised delivery model

Under Ownly’s pricing structure, restaurants will pay delivery fees of ₹25 for orders below ₹400 and ₹50 for orders above ₹400, according to sources close to restaurant partners. However, the company is cross-subsidising these costs, with customers paying only a portion of the actual delivery expense.

For smaller orders valued at ₹100 and below, restaurants pay just ₹10 while customers are charged ₹20 for delivery. For orders above ₹100, restaurants pay ₹25 plus GST as a flat fee.

“We are cross-subsidising delivery costs. Structurally, we hope to bring delivery costs down across the industry,” Rapido said in its partner communication.

Revenue model and growth strategy

Rather than relying on commissions, Rapido plans to eventually charge restaurants a flat subscription fee once it achieves “real structural change in delivery prices.” The company emphasised it will “always remain zero commission.”

The platform also promises no packaging costs, no platform fees for customers (other than GST), and insists on maintaining price parity between dine-in and delivery menus. Rapido has asked its partner restaurants to commit to listing at least four “meal” options priced under ₹150 to keep the platform accessible to price-sensitive users.

“Every person should have the luxury of choice and the ability to order a reasonably priced meal,” the company stated.

Rapido is also taking a different approach to restaurant visibility, emphasising “earned visibility, not discounted visibility.” Instead of promoting restaurants through discounts and paid advertising, the platform will primarily use ratings to determine restaurant rankings.

Industry sources suggest Rapido’s entry could significantly disrupt the current market dynamics. “This could bring about a disruption in the market which is currently dominated by Swiggy and Zomato,” said an industry stakeholder familiar with the company’s plans.

The zero-commission model addresses a key pain point for restaurants, many of which have struggled with the high platform fees charged by existing food delivery apps. However, the success of Ownly will depend on Rapido’s ability to acquire customers in the competitive food delivery market while maintaining its promise of zero commissions and cross-subsidized delivery costs.

This comes at a time when Rapido is raising ₹125 crore (around $15 million) from Nexus Ventures as part of its Series E round.

Published on June 10, 2025