Rapido crashes food delivery party. Should Swiggy and Eternal investors be worried?
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Just when Swiggy and Zomato thought they had the food delivery turf locked down, ride-hailing app Rapido has kicked the door open, threatening to shake up the duopoly with a bold, undercutting strategy. The bike-taxi platform has entered the food delivery business, charging restaurants commissions nearly half of what Zomato and Swiggy do. That single move has already jolted investor sentiment. Shares of Swiggy and its listed parent, Eternal, slid 2–3% in the previous session and fell another 1% today, as investors absorbed the news of Rapido’s entry. Elara Capital’s Karan Taurani didn’t hold back: “Rapido could challenge stable take-rates and profitability of the incumbents,” he said, warning that while Rapido’s lack of a dedicated fleet may impact delivery experience in a market obsessed with sub-30-minute fulfillment, its growing scale could still disrupt the status quo. Rapido’s commission model is a flat 8–15%, far below the 21–22% ra...