Rapido's food delivery service, Ownly, has launched fully in Bengaluru after a pilot phase. It operates as a zero-commission platform for restaurants, charging them a small fixed fee per order instead of a percentage, directly challenging the commission models of Zomato and Swiggy.
The company aims to disrupt the food delivery duopoly by promoting a "restaurant-first" model based on transparency and fairness. This expansion occurs as competition in the sector heats up, with Flipkart also reportedly planning to enter the market soon.
The main topics covered are the launch of Ownly in Bengaluru, its unique fee structure for restaurants, its goal to challenge established market leaders, and the intensifying competition in the food delivery sector.
Ride-hailing platform Rapidoâs food delivery app Ownly has rolled out its services across Bengaluru after almost seven months of piloting its operations in Koramangala, HSR Layout, and BTM Layout, the company announced on Tuesday.
âAt Ownly, we see a strong opportunity to build a restaurant-first model that supports small and big partners, to cater to the evolving needs of their customers,â Aravind Sanka, founder, Rapido and Ownly, said in a statement.
According to the company, Ownly is a zero-commission platform, i.e., it doesnât charge any fee from restaurants. On the other hand, Zomato and Swiggy charge commissions ranging between 16-30%.
Ownly was launched with a fixed fee of Rs 25 (for restaurants) on orders below Rs 400, and Rs 50 on orders over Rs 400 to fight the duopoly of Zomato and Swiggy.
âWe believe that transparency, honesty, and fairness are key drivers of long term growth for the sector and hope that Ownly can enable more people to enjoy the convenience of ordering in,â Sanka added.
With food delivery, Rapido is looking to challenge market leaders and replicate its success in the ride-hailing sector, where it has dented the Uber-Ola duopoly.
This development comes as competition in the food delivery segment intensifies, with ecommerce platform Flipkart evaluating its entry into the market.
The Walmart-owned company is targeting a pilot in Bengaluru around May-June, with a full-scale launch likely by the end of this year or early next year, ET had reported on February 12.
âAt Ownly, we see a strong opportunity to build a restaurant-first model that supports small and big partners, to cater to the evolving needs of their customers,â Aravind Sanka, founder, Rapido and Ownly, said in a statement.
According to the company, Ownly is a zero-commission platform, i.e., it doesnât charge any fee from restaurants. On the other hand, Zomato and Swiggy charge commissions ranging between 16-30%.
Ownly was launched with a fixed fee of Rs 25 (for restaurants) on orders below Rs 400, and Rs 50 on orders over Rs 400 to fight the duopoly of Zomato and Swiggy.
âWe believe that transparency, honesty, and fairness are key drivers of long term growth for the sector and hope that Ownly can enable more people to enjoy the convenience of ordering in,â Sanka added.
With food delivery, Rapido is looking to challenge market leaders and replicate its success in the ride-hailing sector, where it has dented the Uber-Ola duopoly.
This development comes as competition in the food delivery segment intensifies, with ecommerce platform Flipkart evaluating its entry into the market.
The Walmart-owned company is targeting a pilot in Bengaluru around May-June, with a full-scale launch likely by the end of this year or early next year, ET had reported on February 12.
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