Rapido tests food delivery in Bengaluru; analysts skeptical on impact

As mobility platform Rapido begins piloting a food delivery service in Bengaluru, analysts expect limited disruption to India’s entrenched food delivery giants.

According to a recent report by Bernstein, the market remains a tight duopoly, with Zomato holding approximately 54 per cent share and rival Swiggy at 46 per cent. While Swiggy has shown stronger year-on-year growth in gross order value (GOV), the US-based asset manager does not foresee Rapido’s entry shifting the balance in the near term.

“We don’t anticipate material market share impact from Rapido’s entry,” said Rahul Malhotra, an analyst at Bernstein, noting that the service remains in its early pilot phase.

Rapido, which provides bike and taxi services, has announced plans to enter the food delivery business with a pilot launch in Bengaluru. The firm, which has raised about $600 million, plans to leverage its rider base (over 3 million) and charge lower take rates of 8–15 per cent. In comparison, Zomato and Swiggy take rates are higher at 18–20 per cent, according to the Bernstein report.

India’s food delivery space has previously seen several entrants attempt to grow the restaurant base by offering lower take rates. These include Amazon, Ola, and ONDC. However, most failed to scale due to limited selection, poor customer experience, and operational complexity.