A McChicken burger, fries and a drink. This meal from this restaurant is available in three different prices, depending on whether you order from Swiggy, Zomato, or Rapido. The price gap is now so wide, it is hard to ignore: Rs 450 on Swiggy, Rs 400 on Zomato, and just Rs 230 on Rapido.
Business journalist Agneeveer Bhattacharya, in a segment aired on NDTV Profit, explained how Rapido, the bike-taxi aggregator, is quietly entering the food delivery arena. Armed with a fleet of four million riders and a zero-commission promise to restaurants, Rapido is now piloting its new food delivery app in Bengaluru by leveraging its expansive 'captain' network.
It is built around a zero-commission model: it doesn't charge restaurants for being listed, a pain point for many in the industry dealing with high aggregator fees.
Agneeveer Bhattacharya broke down the math using a McChicken meal from McDonald's with a base price of Rs 199.
"Today if you try to order on Swiggy or Zomato, food packaging and other platform charges come into play," he explained. "Prices of dishes will be same in dine-in as they are on the food delivery platform. So if something costs Rs 200 in the restaurant, it will cost Rs 200 on the Rapido platform."
He further explained how consumers end up paying far more on existing platforms.
Swiggy, for instance, adds Rs 78 for delivery, Rs 30 for packaging, Rs 12 as a platform fee, and Rs 17 in GST, taking the total to Rs 450.
Zomato follows with Rs 35 delivery, Rs 30 packaging, Rs 10 platform fee, and Rs 13 GST, making it Rs 400.
Now, Rapido's new platform lists no packaging cost, zero platform fee, only Rs 20 for delivery, and Rs 10 GST, keeping the total at Rs 230.
Agneeveer Bhattacharya said the model benefits both restaurants and consumers. "Rapido has said that this platform will be a zero-commission model, which is again benefiting restaurants, but boils down to how consumers are likely to pay," he said.
"Customers will not be paying for their food packaging separately," he said. "As a consumer, this is what you stand to benefit, and this is how this will disrupt the space."
The move also comes at a time when restaurants have voiced growing frustration over high aggregator commissions. An NDTV Profit report also highlights the "mounting resentment among restaurants over high aggregator fees," saying the market is ready for change.
