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News In Brief Business and Economy

Rapido to Expand Its Food Delivery Pilot Program

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Rapido to Expand Its Food Delivery Pilot Program
16 Oct 2025
5 min read

News Synopsis

Rapido’s food delivery service, Ownly, is gearing up for a wider rollout by the end of November. The expansion comes shortly after Swiggy sold its stake in Rapido for ₹2,400 crore to Prosus and Westbridge Capital, with Prosus reportedly leading an additional $350 million funding round. This financial backing positions Rapido to scale its food delivery operations aggressively.

Ownly Pilot Launched in Bengaluru

The Ownly pilot was initially launched in mid-August in select Bengaluru neighborhoods, including Koramangala, HSR Layout, and BTM Layout. The focus was on localities with high concentrations of students and working professionals.

According to sources, Rapido is now planning to expand the service to other localities in Bengaluru, and eventually to other metro cities.

Rapido’s Approach to Food Delivery

An Ownly spokesperson stated, “Ownly has been designed with a simple and transparent model, including a flat delivery fee, no packaging charges, and zero commission for restaurant partners. This ensures affordability for customers while helping restaurants build a sustainable delivery business.”

The model contrasts with traditional platforms like Swiggy and Zomato, which often charge commission fees on each order.

Challenges Faced During the Pilot

Despite its innovative approach, the pilot initially struggled to gain traction. Restaurant partners expressed concerns over matching online menu prices with offline rates. Since Ownly does not charge packaging fees or platform commissions from customers, restaurants had to absorb packaging costs of ₹5-10 per order.

While this model aimed to attract value-conscious users, it placed additional financial pressure on restaurants. Rapido is reportedly exploring options such as absorbing packaging costs to alleviate partner concerns.

Unique Three-Tier Delivery Fee Structure

Ownly differentiates itself through a three-tier delivery fee system instead of commissions. According to the finalized rate card shared with restaurant partners:

  • Orders above ₹400: Restaurant pays ₹50 + 18% GST (total ₹59)

  • Orders between ₹100–₹400: Restaurant pays ₹25 + 18% GST (total ₹29.50)

  • Orders below ₹100: Fee is shared; customer pays ₹20 + GST (₹23.60) and restaurant pays ₹10 + GST (₹11.80), totaling ₹35.40 in delivery revenue

This approach ensures predictable costs for restaurants while keeping pricing affordable for customers.

Strategic Expansion Plans

Rapido aims to expand Ownly to more neighborhoods in Bengaluru, focusing on areas with high student and working populations. The company is also eyeing other metro cities, signalling a push to compete in India’s growing food delivery market.

The expansion aligns with Prosus’s investment, which is expected to provide financial cushioning for aggressive growth and market penetration.

Prosus Funding Boosts Growth Potential

The recent stake sale by Swiggy and the $350 million funding round led by Prosus will help Rapido accelerate Ownly’s expansion. The investment is likely to support marketing, operations, and technology development, ensuring a competitive edge against established players like Zomato and Swiggy.

Conclusion

Rapido’s Ownly food delivery service is poised to expand beyond its initial Bengaluru pilot, offering a flat-fee, commission-free model designed for affordability and sustainability. By addressing partner concerns and leveraging recent funding, Rapido is aiming to establish a strong foothold in India’s food delivery market, potentially reshaping pricing and delivery strategies.