Swiggy-backed Rapido plans food delivery with lower fees

Swiggy CEO and co-founder Sriharsha Majety discussed the changing food delivery market during Prosus’ Capital Markets Day 2025.

His comments addressed Rapido’s intention to enter the food delivery sector.

Swiggy invested in Rapido during its US$180 million series D funding round in 2022 and holds a 12-13% stake in the ride-hailing service.

Reports indicate that Rapido plans to offer lower commission rates for restaurants compared to established competitors Swiggy and Zomato.

Rapido’s potential entry occurs as food-tech companies face scrutiny from restaurant partners and the National Restaurant Association of India regarding high commission rates.

These rates have reportedly affected restaurant profitability.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ Food delivery has been a revolving door for challengers despite high entry barriers

Majety’s reference to “20 players in 2015” followed by Uber, Ola, Amazon, and now Rapido reflects a consistent pattern of new entrants challenging the duopoly.

Despite these repeated challenges, Zomato and Swiggy have maintained their dominance, with Zomato currently holding 58% market share and Swiggy at 42% in the food delivery segment 1.

This resilience stems partly from network effects and economies of scale. Zomato delivers approximately 1.3 million orders daily, translating to over 10 orders per restaurant, creating high operational efficiency 2.

The continuous wave of new entrants suggests the market remains attractive despite high entry barriers, with India’s online food delivery market projected to reach $2.5-3.5 billion in GMV 3.

Majety’s confidence in Swiggy’s rapid response capabilities (developing Snacc in just 16 days) demonstrates how established players defend market position through agile innovation rather than relying solely on scale advantages.

2️⃣ Commission rates remain the industry’s most contested battleground

Rapido’s strategy of entering with “significantly lower commission rates” targets a persistent vulnerability in the food delivery ecosystem where restaurants have long protested high fees.