Rapido likely to run food delivery pilot in Bengaluru soon
Rapido
is expected to launch a pilot programme for its food delivery service in Bengaluru in the coming weeks, said people briefed on the developments.
To begin with, the WestBridge Capital-backed company is planning to tap into larger restaurant chains and has been in discussions with the likes of India franchisee operators of McDonald's, KFC and Pizza Hut, as well as other
quick service restaurants
and cloud kitchen chains that see high order frequency.
'Initially, the focus will be on delivering from larger restaurant chains for a shorter distance. These chains have among the most dense networks of outlets in top cities from where deliveries of up to 5 km can be made,' said one of the persons, who did not wish to be identified. 'A substantial part of the orders come from these large chains whereas the long tail of smaller outlets gives a broader choice to the consumers.'
For the quarter ended December 2024,
Zomato
had 306,000 average monthly active restaurant partners for food delivery, while
Swiggy
– which is one of the investors in Rapido – had 243,400. Swiggy and Rapido have Dutch investor Prosus as a common backer.
'Zomato and Swiggy have around Rs 400-450 AOV (average order value) for their food delivery… and even though they've started low-cost, pocket friendly options to expand their TAM (total addressable market), there's a very large base of consumers to be tapped into where AOVs will be not more than Rs 250, where Rapido will have its play,' said another person.
'Many restaurants increase prices while listing on aggregators to adjust for the commission that is levied on them. The subscription model lowers the cost for the restaurants that can be passed on to the consumers,' this person added.
ET was the first to report, on March 12, about Rapido entering the food delivery segment, saying the company will take the subscription model route that it has deployed for four-wheeler ride-hailing.
Rapido will charge restaurants a fixed periodical subscription fee for access to the platform and a per order delivery fee, against a percentage commission rate levied by incumbent operators Zomato and Swiggy, according to people in the know.
Rapido did not respond to queries emailed by ET.
Game plan
For the Bengaluru-based company, which closed a $200-million round led by WestBridge Capital in September 2024, the focus is on finding new areas of growth, with food delivery and insurance distribution being on the cards.
The company crossed $1 billion in gross merchandise value last fiscal.
'Rapido has grown fast in ride-hailing thanks to the subscription model in three-wheelers and four-wheelers… but it has managed to show this growth because it's come late and is displacing the likes of Ola in the market. The ride-hailing market itself, however, isn't growing that rapidly, making it imperative for the company to find new streams for future growth,' said an investor.
ET had reported on April 1 that in the four-wheeler ride-hailing segment, Rapido had more than 20 per cent market share (and growing), with Uber having 50 per cent and Ola 30 per cent share.
However, the startup's move into food delivery comes at a time when growth in the food delivery segment, which is the biggest revenue generator for Zomato and Swiggy, has been slowing.
In an interview with ET last month, Deepinder Goyal, CEO of Zomato-parent
Eternal
, had flagged systemic issues with the food delivery segment, indicating that the publicly listed company would take fresh initiatives to address these hurdles.
As per brokerage firm Bernstein, Gurgaon-based Zomato has a 57.1 per cent market share in food delivery while Swiggy has the remaining 42.9 per cent .
The segment has also seen new players and services being introduced over the past few months, especially for 10-minute food delivery. These include offerings from quick commerce companies including Zepto and Eternal-owned Blinkit, in addition to standalone players such as Accel-backed Swish.
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This brings early childhood education (also known as pre-school education for children of ages 3 to 5) under the ambit of formal schooling. The mid-day meal programme will be extended to pre-school children. The NEP says students until Class 5 should be taught in their mother tongue or regional language. Other Important Articles Covering the same topic: 📍Explained: India's National Education Policy, 2020 Previous year UPSC Main Question Covering similar theme: 📍Discuss the main objectives of Population Education and point out the measures to achieve them in India in detail. (2021) Truce is called, cultural tussle remains: behind Thailand-Cambodia hostility Syllabus: Preliminary Examination: Current events of national and international importance. Mains Examination: General Studies II: Effect of policies and politics of developed and developing countries on India's interests. What's the ongoing story: After days of deadly fighting, Cambodia and Thailand on Monday agreed to an 'immediate and unconditional ceasefire'. The ceasefire was negotiated by Prime Ministers Hun Manet of Cambodia and Phumtham Wechayachai of Thailand at a meeting hosted by Malaysian PM Anwar Ibrahim in Kuala Lumpur. Key Points to Ponder: • Map Work-Thailand and Cambodia • What is the conflict between Cambodia and Thailand? • What triggered the recent escalation between Thailand and Cambodia recently? • What is Theravada-Buddhism? • 'At the centre of the border dispute is the Preah Vihear temple'-Know about temple's location, history and reason for dispute • How nationalism and cultural heritage rivalry played significant role in shaping foreign policy and conflict dynamics between Cambodia and Thailand? • What are the geopolitical implications of the conflict for regional stability in Southeast Asia and India's strategic interests? Key Takeaways: • Tensions between Cambodia and Thailand had been simmering since May, when they skirmished at a contested area of the border, leading to the death of a Cambodian soldier. • Nationalist rhetoric in both countries and a series of tit-for-tat actions followed. Cambodia banned the import of Thai fruits and broadcast of Thai films and soap operas; Thailand closed all land crossings. • Recently, Thailand withdrew its ambassador from Cambodia and expelled the Cambodian envoy after a Thai soldier lost a leg in a land mine blast. Thailand claimed the mine was laid by Cambodian troops in Thai territory. • Cambodia responded by downgrading diplomatic relations and recalling all Cambodian staff from its embassy in Bangkok. Clashes broke out at half a dozen places along the border between the Thai provinces of Surin and Sisaket, and Cambodian provinces of Oddar Meanchey and Preah Vihear. • Thailand launched air strikes on Cambodian military sites, and Cambodia responded with rocket and artillery fire. Exchanges of artillery and machine gun fire followed, in which at least 35 people were killed and more than 2.6 lakh civilians were displaced on both sides of the border, Reuters reported. Do You Know: • The 817-km land border between Cambodia and Thailand was drawn in 1907 by France, then the colonial power in Cambodia. Like many other borders drawn by colonial administrators, this too has long been disputed. • The two predominantly Theravada-Buddhist neighbours are more alike than any other country in the region, sharing ethnic and linguistic ties, social norms, culinary traditions, and cultural activities. But both claim to be the 'original' owners of their heritage. This is what drives the animosity between them. • The competing claims of cultural ownership are rooted in contesting readings of history, which, scholars say, are purposely propped up by governing elites of the two countries to strengthen their domestic positions. 'Countries fabricate history to celebrate their past, using nationalism as a political tool in the manipulation of public opinion… It is evident that contemporary Thai-Cambodian relations have become a casualty of the remade past,' wrote Charnvit Kasetsiri, Pou Sothirak and Pavin Chachavalpongpun in Preah Vihear: A Guide to the Thai-Cambodian Conflict and Its Solutions (2013). • At the centre of the border dispute is the Preah Vihear temple, which is called Phra Viharn in Thai. 'The temple has meaning — both as a cultural symbol and a religious place of worship — to people on both sides of the border,' John D Ciorciari, a professor of international politics at Indiana University, wrote in his 2009 paper 'Thailand and Cambodia: The Battle for Preah Vihear'. • Preah Vihear temple is the most famous of many disputed sites at the Cambodia-Thailand border which hold cultural significance for both countries. Another such temple, called Prasat Ta Moan Thom by the Cambodians and Prasat Ta Muen Thom by the Thai, witnessed fighting during the recent hostilities. Other Important Articles Covering the same topic: 📍Thailand, Cambodia agrees on ceasefire deal after five days of battle Power of rebasing: How Nigeria's GDP jumped from No. 58 to No. 55 in a day Syllabus: Preliminary Examination: Current events of national and international importance. Mains Examination: General Studies II: Effect of policies and politics of developed and developing countries on India's interests. What's the ongoing story: Until July 20, Nigeria was the 58th largest economy in the world. A day later, it rose three spots to the 55th rank, overtaking Ukraine, Qatar, and Hungary in the process as it added more than $50 billion, or roughly 30 per cent of its GDP, in 2024. Key Points to Ponder: • What is the concept of GDP rebasing? • What is the GDP base year? • Why GDP base year is rebased? • How can changing the base year impact nominal GDP figures? • What are the pros and cons of GDP rebasing exercises? • What is the base year for the GDP, IIP and CPI? • What are the considerations for the new base year? • How is a base year chosen? Key Takeaways: • On July 21, Nigeria's National Bureau of Statistics (NBS) published the results of its GDP rebasing exercise, which saw the base year of the indicator being updated to 2019 from 2010, among other changes. The result? Nigeria's GDP in 2024 is now estimated at $243 billion in nominal terms, up from $187 billion forecast by the International Monetary Fund (IMF). • A new base year – which essentially means measurement of GDP, or the final value of goods and services in any particular year, with respect to the prices prevailing in that year – does not automatically lead to a larger economy. However, Nigeria's base-year revision exercise included other more meaningful changes in the manner in which the African nation calculates the GDP. • This included increasing the scope of its methodology to include previously undercounted sectors such as digital services, pension fund operations, and e-commerce activities, among others, in what the NBS has called 'by far the most comprehensive rebasing' it has ever carried out. As the NBS said, technological development, structural changes, and changes in production and consumption patterns mean 'the methods and data used in estimating GDP must change with the times to reflect current economic realities'. • This is not the first time Nigeria has seen such a huge increase in its GDP due to the base year revision. More than a decade ago, change in the base year from 1990 to 2010 had helped propel Nigeria to the position of Africa's largest economy thanks to an even-larger 89 per cent increase in the GDP to $510 billion in 2014. Do You Know: • While the rebasing brings Nigeria $50 billion closer to achieving the government's target of becoming a $1 trillion economy by 2030, the objective is well-nigh impossible after the Nigerian currency, the naira, was devalued sharply in 2023 and 2024. The result was that the naira fell by 49 per cent against the US dollar in 2023 and another 41 per cent in 2024. • The GDP rebasing also brought into spotlight changes in the Nigerian economy that will not make for happy reading. One, the share of agriculture in the country's GDP had increased to almost 26 per cent in 2019 from 22 per cent estimated earlier, while that of industry declined sharply to 21 per cent from 27.65 per cent. Two, the contribution of the informal sector to the GDP has increased to 42.5 per cent from 41.4 per cent. • India, of course, is no stranger to GDP revisions; in fact, the Ministry of Statistics and Programme Implementation (MoSPI) is currently in the process of updating the GDP base year to 2022-23 from 2011-12. The rebased GDP numbers will be released in February 2026. • The last time India's key macroeconomic indicator underwent a major revision was in 2015, when questions were raised about the accuracy of the numbers even by the Reserve Bank of India (RBI) after the GDP growth rate for 2013-14 was initially revised upwards to 6.9 per cent from 4.7 per cent, prompting Raghuram Rajan – then the governor – to comment that the Indian central bank found it 'hard to see the economy as rollicking in 2013-2014'. Other Important Articles Covering the same topic: 📍Why govts revise GDP base year and methodology, why the proposed 2026 revision matters for India's global standing Previous year UPSC Main Question Covering similar theme: 📍Explain the difference between computing methodology of India's Gross Domestic Product (GDP) before the year 2015 and after the year 2015. (2021) ECONOMY EU trade talks: India to offer regulatory certainty in manufacturing to woo FDI Syllabus: Preliminary Examination: Current events of national and international importance Mains Examination: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests. What's the ongoing story: In the first such offer made during trade deal negotiations, India is working on a 'new chapter' aimed at extending long-term regulatory certainty in the domestic manufacturing sector to attract investment from the European Union (EU), The Indian Express has learnt. Key Points to Ponder: • Define 'regulatory certainty' in the context of FDI. • Why offering 'regulatory certainty' in manufacturing can help India attract EU investments? • Know the rationale behind India and the EU sharing concerns about China's manufacturing overcapacity. • What constraints or conditions is India proposing along with 100% FDI in manufacturing sectors under the EU deal? • How India's 2016 termination of its BITs impacted investor confidence? • Know the strategic significance of including non-services (manufacturing) investment chapter in the India EU FTA. Key Takeaways: • This comes in the backdrop of shared concerns between India and the EU over Chinese overcapacity, which is viewed as a threat to domestic manufacturing of critical products such as pharmaceuticals, electronics and defence requirements, among others. • 'In the EU deal, one of the new chapters that has come in is about investment in non-services, which is a new element where they (EU) are looking at certainty on the commitments for FDI in non-services sectors — basically the manufacturing sector,' a senior government official said. 'There are two parts to it. One is deciding on sectors where India will allow 100 per cent FDI. • Second, there are a number of conditions on things such as 'local employment', 'local value addition', 'use of local raw materials' and conditions around whether there will be local partners and joint ventures or not,' the official said. • This comes as India has begun seeking to attract investments from Western countries in exchange for lowering tariffs on key sectors. For instance, India has allowed 100 per cent FDI in telecom for the UK under the trade deal. In the insurance sector, the FDI ceiling has been kept at 74 per cent, providing investment certainty for UK insurers. A similar strategy was followed in the European Free Trade Association (EFTA) deal. Do You Know: • India and the four-nation EFTA — an intergovernmental grouping comprising Iceland, Liechtenstein, Norway and Switzerland — signed a trade pact in March 2024, under which EFTA countries have committed to investing $100 billion in India over a 15-year period. However, officials indicated that the investment chapter in the EU deal would be far more extensive and legally robust. • India and the EU have both been facing several challenges, particularly in the renewable energy sector. Another government official told The Indian Express that the Indian industry has been encountering pricing challenges, especially while trying to scale up the solar energy sector, and that India will have to work with 'Western countries' to achieve competitiveness and tackle the China challenge. • According to a parliamentary report released last year, the EU is concerned about China's dominance in critical technologies, as China holds a leading global manufacturing position in several areas, exposing the EU to potential risks. The EU has said these sectors include raw or processed materials for robotics, as well as clean technologies including solar PV wafers, EV batteries and wind turbine blades. • An EU trade deal status report earlier this month stated that India and the EU had made substantial progress on the text dealing with 'services and investment', marking a significant step forward towards concluding the Free Trade Agreement (FTA) that both sides aim to sign by the end of the year. • The EU report also noted that negotiators had made substantial progress on the investment text, and that they had also made very good progress on rules for state-to-state mediation. Progress on dispute settlement is significant, as it suggests a breakthrough on long-standing EU concerns regarding investment protection in India. Other Important Articles Covering the same topic: 📍India, EU look to seal trade deal this year, Trump keeps markets reeling Previous year UPSC Main Question Covering similar theme: 📍The expansion and strengthening of NATO and a stronger US-Europe strategic partnership works well for India. What is your opinion about this statement? Give reasons and examples to support your answer. (2023) PRELIMS ANSWER KEY 1.(b) For any queries and feedback, contact Subscribe to our UPSC newsletter. Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X. Priya Kumari Shukla is a Senior Copy Editor in the Indian Express (digital). She contributes to the UPSC Section of Indian Express (digital) and started niche initiatives such as UPSC Key, UPSC Ethics Simplified, and The 360° UPSC Debate. The UPSC Key aims to assist students and aspirants in their preparation for the Civil Services and other competitive examinations. It provides valuable guidance on effective strategies for reading and comprehending newspaper content. The 360° UPSC Debate tackles a topic from all perspectives after sorting through various publications. The chosen framework for the discussion is structured in a manner that encompasses both the arguments in favour and against the topic, ensuring comprehensive coverage of many perspectives. Prior to her involvement with the Indian Express, she had affiliations with a non-governmental organisation (NGO) as well as several coaching and edutech enterprises. In her prior professional experience, she was responsible for creating and refining material in various domains, including article composition and voiceover video production. She has written in-house books on many subjects, including modern India, ancient Indian history, internal security, international relations, and the Indian economy. She has more than eight years of expertise in the field of content writing. Priya holds a Master's degree in Electronic Science from the University of Pune as well as an Executive Programme in Public Policy and Management (EPPPM) from the esteemed Indian Institute of Management Calcutta, widely recognised as one of the most prestigious business schools in India. She is also an alumni of Jamia Milia Islamia University Residential Coaching Academy (RCA). Priya has made diligent efforts to engage in research endeavours, acquiring the necessary skills to effectively examine and synthesise facts and empirical evidence prior to presenting their perspective. Priya demonstrates a strong passion for reading, particularly in the genres of classical Hindi, English, Maithili, and Marathi novels and novellas. Additionally, she possessed the distinction of being a cricket player at the national level. Qualification, Degrees / other achievements: Master's degree in Electronic Science from University of Pune and Executive Programme in Public Policy and Management (EPPPM) from Indian Institute of Management Calcutta ... Read More
