Zomato and Swiggy, dominate the Indian food delivery market, holding a combined market share exceeding 90%. This near-duopoly creates concerns about potential anti-competitive practices and reduced competition. Their established presence makes it difficult for new competitors to gain a foothold, especially given their large customer base and extensive reach. With limited competition, restaurants and consumers may have fewer choices and less leverage in negotiations. While not a complete monopoly, Zomato is exhibiting monopolistic traits, including strong control over pricing and policies, limited options for restaurants, and reduced discounts for customers. But this approach does not last long, as a new brand is silently making its way to the vast Business.
Rapido enters Food Delivery Business with Lower commissions amd simpler charges. Rapido is already a popular name in many.household. They were into the transportation sevices just like #ola and #uber. They started their bike services business from a small town and slowly made a while in the market highest player likes of #ola and #uber. Rapido is popular due to its affordability, speed, and convenience, particularly in navigating traffic-congested urban areas. Its bike taxi service offers a cost-effective and efficient alternative to traditional cabs, especially for shorter distances. Now they were entering into the new venture with some great offers :
Currently being the biggest market player, #zomato & #swiggy currently charge 16–30% as commission from restaurants. But the new entrants Rapido is ready to charge just 8–15%, depending on order value. They also introduced flat delivery fee for customers:
- Rs. 25 for orders below Rs. 400
- Rs. 50 for orders above Rs. 400
The Pilot launch of the new project will begin from Bengaluru by July 2025. Tied up with NRAI (National Restaurants Association of India) to bring small restaurants on board who are struggling with aggregator charges.
This is going to be a bold move, but food delivery needs deep pockets & patience. It will be interesting to see how their new venture survive in the tough competition of Zomato and Swiggy.
In good faith - Peace!!
Posted Using INLEO
