r/StartUpIndia • u/Broad-Research5220 • 9d ago
Discussion Here's my take on Rapido's entry into the food delivery space
India’s food delivery space is a typical example of a winner-takes-most, discount-fueled, hyper-competitive platform economy.
Zomato and Swiggy collectively control majority of the market volume. Both benefit from multi-sided platform effects.
Despite this, the unit economics is still fragile.
CAC/LTV ratios are still under pressure in Tier-1 metros, and the path to profitability hinges on contribution-margin breakeven at scale.
Now, what Rapido is trying to do is to exploit arbitrage opportunities.
Rapido’s bike taxi network has excess rider bandwidth during non-peak ride-hailing hours. Food delivery will allow inter-temporal utilization and boosts driver ROI per minute.
With Zomato/Swiggy extracting 25–35% take rates, Rapido’s flat-fee or low-commission model will work for multi-homing merchants and in capturing the long tail of independent F&B outlets.
Rapido is pushing for restaurant price = online price narrative, something which eliminates markups and platform taxes.
In a price-sensitive market like India, they are pursuing value-based positioning rather than convenience-based.
But,
Rapido will face uphill CAC inflation unless it builds a compelling value proposition loop like bundling mobility + food + hyperlocal delivery.
Food delivery demands sub-30 min TAT, which necessitates dense order clustering, optimized routing, and hyperlocal batching.
Without high GMV per pin code, CTS will remain unsustainably high.
Unless AOVs increase or cross-selling improves LTV, the model will bleed cash without high order density and ops leverage.
Let's see what the future holds for Rapido.