Introduction: Rapido’s Strategic Pivot into Food Delivery
India’s competitive gig economy is about to witness a new shake-up. Rapido, the ride-hailing giant known for transforming two-wheeler commuting in India, is now taking a bold leap into the food delivery space. Backed by a fresh INR 125 crore (~$15 million) investment from Nexus Venture Partners, Rapido is ready to launch ‘Ownly’, its ambitious new venture that aims to rival established players like Swiggy and Zomato.
This strategic move marks a significant evolution in Rapido’s business model—from a mobility-first platform to a multi-service ecosystem. But what does this expansion mean for India’s already crowded food delivery market? Let’s take a closer look.
Rapido’s Rise in the Ride-Hailing Industry
Founded in 2015, Rapido started with a simple but effective model—two-wheeler taxis in congested Indian cities. Over the years, it has:
- Expanded to over 100 cities in India
- Partnered with delivery aggregators and logistics platforms
- Amassed over 10 million downloads
- Become a household name, especially among Tier 2 and Tier 3 city commuters
Its strengths lie in affordability, hyperlocal reach, and a robust network of captains (its term for delivery partners). These very strengths may now become its advantage in the food delivery segment as well.
Nexus Venture Partners: Why the Bet on Rapido?
Nexus Venture Partners, one of India’s most respected VC firms, has previously backed startups like Delhivery, Zomato, and Postman. Its decision to infuse INR 125 crore into Rapido Datalabs signals strong investor confidence in Rapido’s ability to diversify successfully.
This capital injection will likely be used for:
- Scaling up Ownly’s tech infrastructure
- Recruiting delivery partners
- Marketing and customer acquisition
- Vendor onboarding and restaurant partnerships
It’s not just a financial bet—it’s a strategic endorsement of Rapido’s long-term vision.
Introducing ‘Ownly’: What Sets It Apart?
While details about Ownly are still emerging, early reports suggest that the platform will take a “hyperlocal + community-first” approach. Here’s how it aims to stand out:
| Feature | Description |
|---|---|
| Focus Areas | Tier 2 & Tier 3 cities |
| Delivery Model | Two-wheeler based, optimized for speed |
| Restaurant Partnerships | Local cloud kitchens and small vendors |
| Tech Edge | Integrated with Rapido app for seamless experience |
| Commission Structure | Potentially lower than Swiggy & Zomato |
Ownly appears to be positioning itself as the “affordable and accessible” food delivery solution—similar to how Rapido tackled ride-hailing.
Market Context: The State of India’s Food Delivery Ecosystem
India’s food delivery sector is expected to reach $20 billion by 2026, according to RedSeer. Yet, it remains a duopoly—largely dominated by Zomato and Swiggy. Here’s a quick market comparison:
| Company | Market Share | Key Strengths | Weaknesses |
|---|---|---|---|
| Zomato | ~54% | Strong restaurant network, tech stack | Higher commission fees, metro focus |
| Swiggy | ~45% | Instamart + delivery synergy | Cash burn and high CAC |
| Ownly (incoming) | <1% | Hyperlocal, cost-effective, existing fleet | Needs scale, brand recognition |
The gap between user expectations and service delivery, especially in smaller cities, is something Rapido is uniquely positioned to address.
Why Rapido Might Succeed in Food Delivery
Unlike new entrants, Rapido isn’t starting from zero. It has:
- A massive delivery network: Thousands of two-wheeler captains already on-ground
- Logistics expertise: Proven ability to manage peak-time logistics
- Lower cost of fulfillment: Bike-based delivery is cheaper than car-based models
- Customer trust: Familiarity among millions of users
Moreover, it can cross-leverage its existing app base to market Ownly, reducing the cost of customer acquisition (CAC).
Key Challenges Ahead for Ownly
Despite its advantages, Ownly will face multiple hurdles:
- Brand Differentiation: Swiggy and Zomato are entrenched players with strong brand recall.
- Unit Economics: Food delivery is notoriously hard to profit from, especially in non-premium markets.
- Vendor Partnerships: Gaining restaurant trust and onboarding will require incentives.
- Regulatory Compliance: Ensuring FSSAI approvals and GST alignments at scale.
Unless Ownly solves these challenges with precision, it risks being just another experimental arm.
Expert Opinions on Rapido’s Diversification
Industry experts are cautiously optimistic. According to food tech analyst Shweta Narayan:
“Rapido’s move is strategic. They are leveraging their last-mile advantage. But food delivery needs deep vendor integration and customer stickiness—it’s not just about quick dispatches.”
Other VCs have noted the timing is critical. With Zomato acquiring Blinkit, the industry is consolidating. Ownly’s success will depend on speed of execution and unit-level profitability.
What This Means for the Indian Consumer
For consumers, especially those in smaller cities:
- More choices in food delivery
- Possibly lower delivery charges
- Faster dispatch times through a two-wheeler-first model
- Localized menu offerings and street-food style kitchens onboarded digitally
If executed well, Ownly could democratize food delivery access in underpenetrated areas.
Conclusion: A New Chapter in Rapido’s Growth Story
Rapido’s INR 125 Cr funding from Nexus Venture Partners is more than just a cash infusion—it’s a clear signal of strategic transformation. With Ownly, Rapido isn’t just entering a new vertical; it’s redefining what a ride-hailing company can become in India’s digital-first economy.
Whether this foray into food delivery disrupts the status quo or becomes a costly experiment remains to be seen. But one thing is certain: Rapido is no longer just about rides—it’s building a lifestyle ecosystem.
