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Home»Food Distributors»In order to compete with Zomato and Swiggy, Rapido reduces food delivery fees by half.
Food Distributors

In order to compete with Zomato and Swiggy, Rapido reduces food delivery fees by half.

adminBy adminJune 10, 2025No Comments2 Mins Read0 Views
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-KH News Desk (cbedit@imaws.org )

Ride-hailing platform Rapido is set to shake up India’s online food delivery landscape by offering restaurant partners significantly lower commission rates compared to industry giants Zomato and Swiggy. According to insiders, Rapido has finalized a deal with the National Restaurants Association of India (NRAI) to charge restaurants a commission between 8% and 15%, nearly half of what the dominant platforms currently charge (typically 16–30%).

As per the agreement, Rapido’s commission structure includes a flat fee of ₹25 on food orders below ₹400 and ₹50 for orders above ₹400. The new service will allow customers to order food via the Rapido app, where participating restaurants will be listed.

“This model is especially beneficial for small and independent restaurants,” said an executive familiar with the matter. The pilot rollout is expected by late June or early July, beginning in Bengaluru. NRAI President Sagar Daryani confirmed ongoing discussions with Rapido, noting that the goal is to create a more sustainable and democratic ecosystem for restaurants. He also emphasized the importance of transparency in customer data sharing—an area where existing platforms have drawn criticism from restaurant partners.

Rapido has yet to comment officially on the partnership. However, the company’s bike taxi fleet currently has a non-exclusive delivery arrangement with Swiggy, active in a few cities during idle hours.The move comes as frustration mounts among small restaurant owners over what they describe as high commissions and opaque charges by Zomato and Swiggy. One such entrepreneur, Vandit Malik, founder of The Garlic Bread, recently stated on LinkedIn that high advertising costs on Zomato leave restaurants with “pennies, or sometimes nothing.”

Similarly, a viral post by NCR-based restaurant Saffroma on X (formerly Twitter) accused Zomato of “zero payouts” and “unauthorized ads,” though the post has since been deleted.Rapido’s food delivery model also parallels NRAI’s earlier efforts with the government-backed ONDC platform, which aimed to create a more restaurant-friendly alternative but has seen slower-than-expected growth.

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