Rapido Unveils New Terms For Food Delivery Partnerships, Offering Lower Commission Rates For Restaurants

Rapido, a ride-hailing app, has set new terms for online food delivery partnerships with restaurants. These terms offer nearly half the commission rates compared to established players like Swiggy and Zomato. Sources familiar with the matter revealed that Rapido plans to charge commissions between 8-15%, while Zomato and Swiggy charge between 16-30%.

The National Restaurants Association of India (NRAI) has agreed on these terms with Rapido. The partnership involves a fixed fee structure: Rs 25 for orders under Rs 400 and Rs 50 for those over Rs 400. This translates to an effective commission range of 8-15%. Consumers will be able to place orders through the Rapido app, where participating restaurants will be listed.

Support for Small Restaurants

This initiative is particularly beneficial for smaller eateries. One executive noted, "This will specially help small restaurants." The pilot phase is scheduled to launch by late June or early July, starting in Bengaluru. NRAI president Sagar Daryani mentioned ongoing discussions with Rapido and ONDC to create a more sustainable model for restaurants.

Daryani emphasized the importance of understanding customer needs and communicated this clearly to partners. He refrained from discussing specific partnership details but highlighted data masking as a contentious issue between restaurants and major platforms.

Challenges Faced by Small Restaurants

In recent months, many small restaurant owners have voiced concerns over what they describe as "steep charges" imposed by Zomato and Swiggy. Vandit Malik, founder of The Garlic Bread, expressed frustration on LinkedIn about spending over Rs 30 per order on ads just to remain visible on Zomato's platform.

Another small restaurant in NCR, Saffroma, shared its grievances on X about quitting Zomato due to "zero payouts" and unauthorized advertisements. Although the post was later deleted, it highlighted the challenges faced by smaller establishments in dealing with large platforms.

Rapido's Current Arrangements

Rapido's bike-taxi riders currently have a non-exclusive agreement with Swiggy to deliver food during idle times in select cities. However, an email seeking comments from Rapido regarding their new partnership remained unanswered.

The NRAI represents over 500,000 restaurants across India and had previously initiated a similar collaboration with ONDC in January. However, progress has been slow as they continue to finalize terms amid limited traction.

This new partnership aims to provide a more viable economic structure for restaurants while addressing concerns about high commissions charged by existing platforms like Swiggy and Zomato.