Rapido’s newly launched food delivery arm Ownly is recording an average order value of around Rs 250, nearly half the Rs 400-420 seen at listed rivals Swiggy and Zomato. Rapido co-founder Aravind Sanka believes a cost structure built around smaller-ticket orders can still make the business profitable.
According to Sanka, delivery accounts for 85-90% of the cost of running food delivery for existing aggregators, making logistics the industry’s biggest expense. Ownly is drawing on Rapido’s existing technology, teams and logistics network instead of building these capabilities separately. It follows a zero-commission model and plans to recover delivery costs mainly through consumer fees.
Those fees are yet to begin in Bengaluru, so Rapido is not earning from Ownly for now. Sanka said they will be introduced as order volumes gain traction. Lower prices are also meant to widen the market. Ownly handles over 50,000 orders a day in the city, roughly five months after its full-scale launch, and 15% of new orders come from users who had never ordered food online before.
On Friday, Ownly launched in Hyderabad, its second market, with 10,000 restaurants onboard and a target of 30,000. By next quarter, the Prosus and WestBridge Capital-backed startup plans to reach Delhi NCR, Mumbai, Pune, Kolkata, Ahmedabad and Surat. Sanka said Ownly is not chasing 10-minute delivery, though about 25% of Bengaluru orders arrive within 20 minutes. Rapido is also staying away from quick commerce, calling food delivery a more natural extension of its marketplace and asset-light logistics model.
