Rapido is betting on expanding India’s online food delivery market by bringing new consumers online rather than competing for existing users. The company’s cofounder and Chief Executive Officer, Aravind Sanka, believes the category must grow significantly over the next three years for new entrants to succeed.
“If the number of people ordering food online doesn’t reach 100 million in three years, there is no reason for Rapido to exist,” Aravind Sanka, Rapido Cofounder and Chief Executive Officer, said in an interview with Moneycontrol.
The remarks come as Rapido expands its zero-commission food-delivery platform, Ownly. Positioned as an alternative to traditional commission-based models, the platform aims to make food delivery more affordable for consumers while enabling more restaurants to participate in the online ecosystem.
According to Sanka, affordability remains one of the biggest barriers to online food ordering in India. He said lowering costs for both customers and restaurant partners could help unlock the next phase of growth for the industry.
Rapido Wants to Grow the Food Delivery Market
Sanka believes India’s online food delivery market remains underpenetrated despite its growth over the years. Instead of competing for the same customer base, Rapido is focused on expanding the category by attracting first-time users and onboarding restaurants that have avoided delivery platforms due to high commissions.
The company expects its existing logistics network, built through bike taxis, parcel deliveries and other mobility services, to support this expansion. Rapido believes using a common delivery infrastructure can improve operational efficiency while keeping costs lower for all stakeholders.
Food Delivery Is Central to Rapido’s Long-Term Growth
Sanka said food delivery is a natural extension of Rapido’s broader logistics business rather than a standalone venture. The company sees its multi-service network as a long-term advantage that can support the movement of people, parcels, and food through a single platform.
As Rapido expands into new consumer services, including travel and ticket bookings, the company is positioning itself as a broader consumer platform. Food delivery is an important part of that strategy, as it seeks to build a larger presence across everyday services.
FAQs
- What did Rapido CEO Aravind Sanka say about online food delivery?
He said India’s online food delivery market needs to reach 100 million users within three years for new entrants like Rapido to remain viable.
- What is Ownly by Rapido?
Ownly is Rapido’s zero commission food delivery platform designed to make online ordering more affordable for customers and restaurants.
- Why is Rapido entering the food delivery market?
Rapido aims to attract new users and onboard more restaurants instead of competing only for existing food delivery customers.
- How is Ownly different from other food delivery apps?
Ownly follows a zero commission model for restaurants, unlike many traditional food delivery platforms.
- Why does Rapido believe the food delivery market can grow?
The company believes affordability and lower costs can encourage more consumers and restaurants to adopt online food delivery.
