According to reports, bike taxi platform Rapido to launch a pilot program for its food delivery service in Bengaluru in the coming weeks.

Firstly, the company supported by WestBridge Capital aims to engage with larger restaurant chains and has been in talks with Indian franchise operators of McDonald's, KFC, and Pizza Hut, along with other quick-service restaurants and cloud kitchen chains that experience high order volumes.

At first, the emphasis will be on providing deliveries from bigger restaurant chains over a shorter distance. These chains boast some of the most compact networks of outlets in major cities, enabling deliveries of up to 5 km. Most of the orders originate from these major chains, while the extensive range of smaller outlets provides consumers with more options.

For the quarter that concluded in December 2024, Zomato reported an average of 306,000 monthly active restaurant partners for food delivery, whereas Swiggy, an investor in Rapido, had 243,400. Swiggy and Rapido share a common investor in Prosus from the Netherlands.

Zomato and Swiggy boast an AOV (average order value) of approximately Rs 400-450 for their food delivery services. While they have introduced affordable options to grow their TAM (total addressable market), there remains a substantial group of consumers available who will have AOVs of no more than Rs 250, which is where Rapido can make an impact.

Numerous restaurants elevate prices when appearing on aggregators to compensate for the commission charged to them. The subscription model reduces expenses for restaurants, allowing them to transfer savings to customers.

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Rapido will impose a regular subscription fee on restaurants for platform access, along with a delivery charge for each order, in contrast to the percentage commission fees charged by existing players Zomato and Swiggy.