Rapido cuts food delivery charges by half to counter Zomato, Swiggy

Time of India

a day ago

Ride-hailing app
Rapido
has finalised online
food delivery
partnership costs and terms with restaurants at nearly half the commissions from entrenched rivals
Swiggy
and
Zomato
, challenging the duopoly, people directly aware of the developments said.
According to the agreed terms with industry body
National Restaurants Association of India
(NRAI), Rapido is expected to charge commissions in the range of 8-15% from restaurants, compared to 16-30% Zomato and
Swiggy
charge, the executives said.
The partnership terms state Rapido will charge a fixed fee of Rs 25 on orders below Rs 400 and Rs 50 on orders over Rs 400, the people quoted earlier said. This translates to a range of 8-15% commissions from restaurants, compared to 16-30% charged by Zomato and Swiggy. Consumers will be able to place orders on the Rapido app where restaurants will be listed.
"This will specially help
small restaurants
," one of the executives mentioned above said. The pilot is expected to go live in June-end or first week of July, starting with
Bengaluru
.
ETtech
"We've been in discussion with Rapido over the last few months just the way we are working closely with ONDC. We are discussing a structure which is economically and democratically much more viable for restaurants to sustain," NRAI president Sagar Daryani said. He declined to comment on specific partner terms. "It's also very important for us to know our customers and the same has been candidly communicated to them," Daryani added. Allegations of data masking have been a core point of disagreement between restaurants and the large platforms.
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An email seeking comments from Rapido remained unanswered. The ride-hailing unicorn's bike-taxi riders currently have a select 'idle-time' arrangement with Swiggy to deliver food in select cities, but the arrangement is non-exclusive. The NRAI, which represents over 500,000 restaurants, had initiated a similar partnership with the government-backed ONDC in January, but the terms are still being ironed out amid slower traction.
Recent months have seen multiple small restaurant owners calling out what they alleged are "steep charges" levied by Zomato and Swiggy. "Zomato is becoming unsustainable for small restaurant owners like us," Vandit Malik, founder, The Garlic Bread, wrote on Linkedin three weeks back. "To even be visible on the platform, I'm forced to spend Rs 30+ per order on ads. What's left? Pennies. Sometimes, not even that," he alleged.
The owners of another NCR-based small restaurant, Saffroma, wrote on X last week, which went viral, that it was quitting Zomato alleging "zero payouts, mystery service charges and advertisements initiated without approval." The post has since been deleted.