Rapido Launches Ownly Food Delivery App in Bengaluru

Ownly, a food delivery app, has been introduced by the mobility platform Rapido in chosen areas such as Koramangala and HSR Layout in Bengaluru, according to information received by Startup Superb. This move follows reports suggesting that the pilot for Rapido’s food delivery app was temporarily halted due to procedural challenges. The Startup Superb team was able to successfully order a pizza in Koramangala using Ownly.

Expansion Plans for Ownly

Sources have indicated that the food delivery service plans to expand to additional parts of Bengaluru in the upcoming months. The potential for the service to reach cities like Delhi NCR and Mumbai will be reliant upon its success within Bengaluru.

Competitive Edge Against Swiggy and Zomato

Ownly aims to take on the established duopoly of Swiggy and Zomato by leveraging Rapido’s extensive rider network for prompt deliveries. The service intends to provide transparent pricing, free from inflated charges, packaging fees, or restaurant commissions. However, industry experts highlight that the high costs, cut-throat competition, and operational challenges could hinder the ability to rival existing players.

Pricing Model of Ownly

Using a three-tier flat pricing structure as finalised with the NRAI, Ownly will charge Rs 20 for orders up to Rs 100, Rs 25 plus GST for orders between Rs 100 and 400, and Rs 50 plus GST for orders exceeding Rs 400. This pricing model maintains restaurant commissions between 8 to 15%, which is lower than the typical 16 to 30% seen in the market.

Changes in Business Relationships

In the meantime, Swiggy has expressed intentions to withdraw its investment in Rapido, referencing the shifting dynamics of their business partnership. Swiggy, led by Sriharsha Majety, had previously spearheaded a $180 million funding round in Rapido back in April 2022 and currently possesses a 12% share in the company.