Rapido Launches Pilot Food Delivery Service Featuring Flat Fee Model
Rapido, the ride-hailing service, is set to launch its food delivery platform in Bengaluru, challenging established players like Zomato and Swiggy. Unlike its competitors, Rapido will implement a flat fee pricing model rather than charging restaurants a commission based on order value. This innovative approach comes at a time when many small restaurant owners are expressing concerns over rising costs associated with existing food delivery aggregators.
Flat Fee Structure
Rapido’s new food delivery service will charge a fixed fee of Rs 25 for orders below Rs 400 and Rs 50 for those exceeding that amount. These fees will be deducted from the order total and paid directly by the restaurant to Rapido. This pricing model differs significantly from the commission-based structures employed by Zomato and Swiggy, which typically charge between 16% and 30% of the order value. Sources familiar with Rapido’s strategy clarified that their pricing is not designed as a percentage-based commission, but rather as a straightforward flat fee.
The company is currently in the experimental phase of this initiative, planning to test the model in select areas of Bengaluru before scaling it up. The aim is to assess operational feasibility and gather insights on customer response. This pilot program is expected to launch in late June, following extensive discussions with the National Restaurant Association of India (NRAI).
Addressing Restaurant Concerns
The NRAI has been vocal about the challenges faced by small restaurant owners due to high aggregator fees. Sagar Daryani, the association’s president, noted that many restaurants feel that current delivery platforms act more as transactional merchants than partners. He emphasized that Rapido’s flat fee model could significantly reduce food delivery costs for restaurants, making it a more appealing option for small and mid-sized businesses.
Daryani also mentioned that Rapido’s pricing strategy was developed after months of consultations with restaurant owners. This collaborative approach aims to create a more sustainable delivery ecosystem that benefits both restaurants and consumers. As the market evolves, there is a growing consensus that pricing parity is essential to ensure the viability of restaurant businesses.
Market Dynamics and Consumer Behavior
The food delivery landscape is changing, with consumers increasingly using platforms like Zomato and Swiggy primarily for ordering from familiar restaurants rather than for discovering new dining options. This shift in consumer behavior has prompted calls for more equitable pricing structures that do not burden restaurant owners with excessive fees.
Rapido’s entry into the food delivery market comes at a time when many small restaurants have taken to social media to express their frustrations with the existing economic models of their larger competitors. By offering a leaner and more predictable pricing structure, Rapido aims to attract these businesses and provide them with a viable alternative to the current market leaders.
Future Prospects
As Rapido prepares to launch its food delivery service, it remains to be seen how well this new model will resonate with both restaurant owners and consumers. The company has yet to respond to inquiries regarding its plans, but its bike-taxi fleet is currently supporting deliveries for Swiggy in select cities on a non-exclusive basis. The success of Rapido’s pilot program could potentially reshape the food delivery landscape in India, offering a fresh perspective on how delivery services can operate in a more restaurant-friendly manner.
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