Rapido in Advanced Talks with NRAI for Entry into Food Delivery Sector

Rapido, the ride-hailing unicorn, is in advanced negotiations with the National Restaurant Association of India (NRAI) to onboard its member restaurants as part of its strategic foray into India’s competitive food delivery market.

The NRAI, which represents over 500,000 restaurants nationwide, has consistently supported the idea of a third major player to counterbalance the duopoly of Swiggy and Zomato, which together hold 95% of the market share.

NRAI’s Push for Alternatives: ONDC and Beyond

Earlier this year, NRAI began exploring integration with ONDC (Open Network for Digital Commerce), the government-supported platform intended to decentralize digital commerce. However, as of now, a scalable and sustainable business model is yet to be finalized.

“We are still trying to figure out a business model where every part of the ecosystem on ONDC benefits, this includes incentives for buyer and seller onboarding apps, aggregators, customers, and our restaurant partners,”
— Pranav M Rungta, Vice President, NRAI

Two Models Proposed by Rapido

Subscription-Based and Low-Commission Framework

Rungta further explained that discussions with Rapido have been ongoing for some time and two monetization models are being considered:

“Two models have been presented, one which looks at reducing the existing commission burden from 35-45% to much lower, as well as a subscription-based model which eliminates commissions,”
— Pranav M Rungta, Vice President, NRAI

The zero-commission SaaS subscription model reflects Rapido's successful shift in its auto and cab businesses last year, which played a key role in the company achieving over $1 billion in gross merchandise value. However, commission-based charges remain in Rapido’s core bike-taxi segment.

Benefits for Both Small and Large Restaurants

“Larger restaurant chains could prefer a subscription model, as they don’t have an inherent need to promote discovery. Smaller restaurants still stand to benefit from reduced commissions, but should also have to optimise on advertising spends. In both models, there are benefits,”
— Pranav M Rungta

Rapido’s Experience and Existing Engagements

Though this may be Rapido’s first direct food delivery venture, it already has relevant operational experience. The company’s bike-taxi riders have been delivering food during idle hours for Swiggy, which is also an investor in Rapido. A similar arrangement exists with ONDC.

According to a source,  Rapido's contract with Swiggy does not restrict it from launching its own food delivery service. However, it prohibits Rapido from offering fleet support to Zomato.

Additionally,  Rapido has expanded its fleet services to include q-commerce platforms like Zepto and Swiggy Instamart, indicating a broader delivery infrastructure in place.

ONDC's F&B Slowdown and NRAI’s Stand

This development comes as ONDC’s food and beverage category saw a 10% month-on-month decline, with only 14 lakh orders recorded in February.

Meanwhile, NRAI continues to oppose Swiggy and Zomato for using their cloud kitchen brands — Snacc and Bistro, respectively — to enter quick-commerce food delivery, citing conflicts of interest in platform data usage.

Rapido History

The history of Rapido, a prominent Indian bike taxi aggregator, began in 2015 when it was founded in Bangalore by Aravind Sanka, Pavan Guntupalli, and SR Rishikesh.

The idea for Rapido stemmed from the founders' firsthand experience with the frustrating traffic congestion prevalent in urban centers like Bangalore. They recognized the potential of two-wheelers to navigate through narrow streets and bypass heavy traffic much more efficiently than traditional four-wheeled taxis, especially for short commutes.

Initially, the company operated under the name theKarrier, focusing on a logistics and supply-chain model catering to businesses. However, the founders soon identified a greater opportunity in the business-to-consumer (B2C) space and pivoted their focus to bike taxi services. This strategic shift led to the birth of Rapido.

The founders started with a small team and a vision to create a platform that would connect individuals needing a ride with experienced two-wheeler owners. Their approach was unique, focusing on leveraging existing two-wheelers rather than investing heavily in their own fleet, which set them apart from competitors like Ola and Uber at the time.

Rapido officially launched its bike taxi services in November 2015 in Bangalore with a small fleet of riders, whom they call "captains." The service quickly gained popularity due to its affordability, convenience, and ability to navigate through traffic.

Key Milestones and Growth of Rapido:

• Early Traction (2016-2017): Rapido rapidly expanded its network of captains and its presence across Bangalore. It also secured its initial funding, including a Series A round of $10 million in 2017 led by Nexus Venture Partners, which fueled its expansion into more cities.

• Rapid Expansion (2018-2020): Through subsequent funding rounds (Series B and C, totaling $110 million), Rapido significantly increased its geographical reach, entering over 100 cities across India and onboarding a large number of captains. By 2021, it had completed over 75 million rides.

• Diversification and Resilience (2020-2022): During the COVID-19 pandemic, Rapido demonstrated its adaptability by expanding into logistics and last-mile delivery services for essential goods and e-commerce companies. It also launched its auto-rickshaw hailing services ("Rapido Auto") in select cities. In April 2022, Rapido raised $180 million in a Series D funding round, with participation from Swiggy and TVS Motor Company, further bolstering its growth and technological infrastructure.

• Unicorn Status (2024): In September 2024, Rapido achieved unicorn status, reaching a valuation of $1.1 billion after raising $200 million in a Series E funding round led by WestBridge Capital. This marked a significant milestone in its journey.

• Continued Investment (Early 2025): Rapido continued to attract investment, raising an additional ₹250 crore (approximately $30 million) from Prosus in February 2025 as an extension of its Series E round.

• Focus on Expansion and New Verticals (2025): As of early 2025, Rapido is focused on expanding its presence to over 500 cities and strengthening its various service offerings, including bike taxis, auto-rickshaws, and its recently launched four-wheeler taxi service ("Rapido Cabs"), aiming to compete more directly with established players like Ola and Uber. The company is also exploring opportunities in the quick-commerce delivery space, leveraging its extensive two-wheeler fleet.

Rapido's journey from a simple idea to a unicorn in the competitive Indian ride-hailing market highlights its founders' vision, adaptability, and focus on addressing the unique transportation needs of urban India.