(Image source from: Business-standard.com)

Rapido, the Indian ride-hailing service famous for its bike taxis, is testing a new food delivery service named Ownly in Bengaluru to compete with the leading companies Swiggy and Zomato. The service is in the trial phase and is currently available in specific areas of the city, such as Byrasandra, Tavarekere, Madiwala (BTM) Layout, Hosur Sarjapura Road (HSR) Layout, and Koramangala, according to co-founder and CEO Aravind Sanka in a conversation with TechCrunch. Rapido introduced Ownly through its fully owned subsidiary, Ctrlx Technologies. In a recent communication to investors, Swiggy allegedly mentioned it might “reassess” its funding, citing “a possible conflict of interest” since Rapido is entering the same market, as reported by The Mint. Reports indicate that Ownly’s goal is straightforward: provide food at approximately 15 percent lower prices compared to Swiggy and Zomato. This strategy works because, unlike its competitors, Rapido does not impose a commission of as much as 30 percent on restaurants. Instead, it utilizes a fixed-fee-per-order approach, a plan it supposedly shared with restaurants in June.

TechCrunch further notes that Rapido intends to restrict delivery areas, displaying only nearby eateries to lower fuel expenditures and enhance service speed. Menus will be arranged to optimize profits while still maintaining restaurant visibility, based on an investor mentioned in the report. The company aims to leverage its extensive fleet, which includes around 10 million vehicles across the country, with 5 to 6 million being two-wheelers, for this new service. This same network is already utilized for its taxi and courier services. Rapido has also previously managed deliveries for Swiggy, giving it knowledge about peak demand periods and favored restaurants. The company can utilize this data, even though its agreement with Swiggy prevents it from collaborating with Zomato or any other rivals. Established in 2015, Rapido began with bike taxi services before expanding into auto rickshaws, parcel delivery, third-party logistics, and, most recently, cab services. It has also teamed up with Taiwan's Gogoro to add battery-swapping electric two-wheelers to its fleet.