A ₹100 meal at a local restaurant can end up costing ₹250–300 when ordered online, according to Rapido co-founder and CEO Aravind Sanka. He believes this pricing gap is one of the biggest reasons India’s online food delivery market has not reached a much larger consumer base.
Rapido is now trying to change that with Ownly, its zero-commission food delivery platform. Sanka argues, as reported by Moneycontrol, that food delivery should focus on bringing more consumers online rather than simply competing for existing users of Zomato and Swiggy.
According to Sanka, a meal that costs ₹80–120 at a restaurant can become significantly more expensive online after commissions, restaurant mark-ups, delivery charges and other fees. He cited the example of a ₹20 plate of idli, saying customers may be willing to pay ₹65 including delivery, but may reject a ₹120 final price.
How Ownly is planning to afford the new business?
Ownly’s model is to keep restaurant menu prices at offline levels while charging customers separately for delivery. Restaurants pay zero commission, with Rapido banking on its existing logistics network to keep delivery costs under control.
The larger ambition is to expand online food ordering beyond its current user base. Sanka estimates that India could have 100 million food-delivery users within three years and has said there would be little reason for Rapido to pursue the business if that market expansion does not happen.
Rapido is effectively betting that lower prices, local restaurants and its existing rider network can bring millions of first-time food-delivery users online.
Rapido launches Ownly in Hyderabad
Mobility platform Rapido on Friday announced the launch of its food delivery app Ownly in Hyderabad — the brand’s second city after Bengaluru — with plans to scale the service to all metropolitan cities across the country in the coming quarter beginning October.
“Over the coming quarter, we plan to expand Ownly to all metros, building on the momentum from our first two cities,” Aravind Sanka, Co-Founder at Rapido & Ownly, told PTI.
He stated that with the Hyderabad launch, the company is bringing the same restaurant-first, zero-commission model for food-delivery, which it introduced in the Bengaluru market.
“Ownly launched in Bengaluru in March this year, and the city has been our proof point, with over 25,000 restaurant partners and around 50,000 daily orders. Hyderabad is a natural second market for us, given its strong food culture and Rapido’s existing presence and Captain network in the city,” Sanka said.
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