Rapido Challenges Food Delivery Giants Like Swiggy and Zomato with Lower Commissions

Ride-hailing app Rapido is making a significant move into the online food delivery market, aiming to disrupt the long-standing dominance of Swiggy and Zomato. The company has finalised partnership terms with restaurants that involve commission rates nearly half of what the established players charge, a development poised to benefit numerous eateries, especially smaller ones. 

As of June 9, 2025, around noon IST, Swiggy's share price is ₹365.15, down 2.48% today, while Eternal (Zomato's) share price is ₹259.80, down 0.79% today 

A New Commission Model to Defy Swiggy and Zomato 

According to discussions with the National Restaurants Association of India (NRAI), Rapido plans to charge commissions in the range of 8-15% from restaurants. This is a substantial reduction compared to the 16-30% typically charged by Swiggy and Zomato.  

The new model will involve a fixed fee structure: ₹25 for orders below ₹400 and ₹50 for orders above ₹400. Consumers will be able to place their food orders directly through the Rapido app, where participating restaurants will be listed. 

The pilot program for this new food delivery service is expected to launch by the end of June or the first week of July, starting in Bengaluru. 

Why Are Existing Restaurants Exiting Swiggy and Zomato? 

This move by Rapido comes at a time when many small restaurant owners have voiced strong concerns about the "steep charges" levied by Zomato and Swiggy. For instance, the founder of The Garlic Bread, Vandit Malik, shared on LinkedIn that advertising costs on Zomato, exceeding ₹30 per order just for visibility, were making operations unsustainable.  

These instances underscore the growing frustration of restaurants with the current commission structures of Swiggy and Zomato.  

How Could Rapido’s Strategy Affect Swiggy and Zomato Share Prices? 

Rapido's entry into the food delivery market could create downward pressure on the share prices of the established duopoly. Restaurants, particularly smaller ones, are actively seeking alternatives due to high existing costs, making Rapido's model highly attractive. 

If Rapido successfully draws a substantial number of restaurants and, subsequently, customers, it could lead to reduced order volumes or force Swiggy and Zomato to lower their own commission rates to remain competitive. Either scenario would directly impact their revenue and profitability, which could be reflected in their stock performance.  

Read more: India's New-Age Tech Stocks: Profit or Loss? The FY25 Report Card for Zomato, Swiggy, Paytm & Others 

Conclusion 

Rapido's foray into online food delivery with significantly lower commission rates marks a potential turning point in India's highly competitive food delivery market. By offering restaurants a more financially viable platform, Rapido aims to attract a large number of partners, especially smaller businesses, and challenge the established dominance of Swiggy and Zomato.  

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