Rapido's food delivery app Ownly goes live in Bengaluru

Ride-hailing platform Rapido's food delivery platform Ownly went live across select pin codes in Bengaluru on Wednesday.

Currently, the app is serviceable in Koramangala, HSR and BTM Layout. Unlike Zomato and Swiggy, which take 16-30% commissions from restaurant partners, Rapido is set to charge commissions in the range of 8-15% from restaurants.

The company will charge a fixed fee of Rs 25 on orders below Rs 400 and Rs 50 on orders over Rs 400. Through food delivery, Rapido is looking to take on incumbents Zomato and Swiggy by aiming to replicate its success from the ride-hailing sector, where it has dented the Uber-Ola duopoly.

ET was the first to report about Rapido’s entry into food delivery on March 12. The company plans to scale the offering to ten cities over the next year, we reported in July.

Rapido's investor Swiggy now becomes a key competitor in the food delivery race. The Sriharsha Majety-led publicly listed company addressed the conflict of interest in the analyst call after reporting its April-June quarter results.

Swiggy said it will sell its approximately 12% minority stake in Rapido.

"Rapido, one of our investee companies, has announced their intention to enter the food delivery space. Having scaled up from a bike-taxi player to a full-fledged mobility platform, Rapido is now the largest mobility player in India by rides, and has been a disruptor in its space. As a shareholder, we are extremely happy with their success and value creation; but do acknowledge a potential conflict of interest that may arise in the future," Swiggy said in a letter to the shareholders.