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Rapido Takes a Bold Step into Food Delivery
In an effort to stake its claim in India’s blossoming food delivery market, Rapido, known primarily for its ride-hailing services, has begun testing its own food delivery operation in Bengaluru. This venture, under the subsidiary Ownly, marks a significant shift as they aim to rival established giants like Swiggy and Zomato. As a ten-year-old startup, Rapido's entry into this competitive realm reflects an increasing trend where transportation platforms diversify their services to capture larger market shares.
How Ownly Plans to Compete
Strategically, Ownly positions itself by offering food from local restaurants at more attractive prices, approximately 15% cheaper than its competitors. This competitive edge is largely thanks to Rapido’s innovative model, where they avoid imposing the hefty commissions that other platforms typically charge, which can be as high as 30%. Instead, Ownly charges a fixed fee per order, appealing to restaurant partners wary of high commissions, thus ensuring both profitability and affordability for the end consumer.
The Significance of Fixed Pricing
Rapido’s approach of not burdening restaurants with high commission fees is rooted in practical insights about operational success. This dynamic allows restaurants to retain more of their earnings, which is especially crucial for small and medium-sized establishments trying to stay afloat in a competitive culinary landscape. The fixed-charge model could signal a shift in the industry, inviting other players to reconsider their pricing strategies.
What This Means for Cantanna and Zomato
As Rapido escalates its stakes, its partnership with Swiggy may pose notable challenges. Swiggy currently holds a minority stake in Rapido, and the potential conflict of interest has already prompted Swiggy to reassess its investment. The evolving landscape introduces new questions about loyalty and competition within food delivery. As Rapido expands, existing platforms will need to reevaluate their strategies to maintain relevance in a fast-evolving market.
What Small Businesses Can Learn
This shift towards competitive pricing demonstrates the importance of adaptability for small and medium-sized business owners in the food service industry. To effectively compete in today's market, businesses should consider exploring partnerships that can lower their operational costs and enhance their service offerings. Leveraging technology to provide better customer value is crucial for survival and growth.
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