Rapido's Billion Dollar Bet: Can Affordable Logistics Unseat Zomato and Swiggy? CEO Aravind Sanka Details Ownly Ambition

Rapido's Billion Dollar Bet: Can Affordable Logistics Unseat Zomato and Swiggy? CEO Aravind Sanka Details Ownly Ambition​

Rapido, the mobility giant, is betting its future on a seemingly unexpected venture: food delivery through its zero-commission platform, Ownly. Company CEO and co-founder Aravind Sanka believes that the logistics network built over a decade provides Rapido with a critical edge in the fiercely competitive Indian food delivery space.

Sanka made it clear that the success of this gamble hinges on scale, stating that there is "no reason for Rapido to exist" if online food ordering does not reach 100 million users within three years. This ambition underscores Rapido's aggressive plans to double the market size in every category they enter, including food delivery.

The Affordability Angle: Why Rapido Challenges the Giants​

While established competitors like Zomato and Swiggy operate on models centered around commissions and higher order values, Rapido is focusing entirely on affordability. Sanka argues that India's next wave of online food customers are not brand loyalists but value seekers who have yet to find affordable delivery options.

The CEO pointed out a significant disparity in costs. A meal priced at ₹ 80-120 in a restaurant often ends up costing between ₹ 250-300 when ordered through some delivery platforms, factoring in commissions, markups, and charges. This gap is the primary deterrent for many consumers.

Rapido's model solves this by operating as a zero-commission platform. Restaurants retain their menu prices, while customers pay separately for delivery costs. Sanka stated that they aim to grow a category rather than fight rivals or take market share, making affordability the core mandate of Ownly.

Critiquing The Delivery Model: Brands Versus Logistics​

Sanka offered pointed criticism regarding the business structure of Zomato and Swiggy, arguing that these platforms are designed only for nationalized chains or established brands. He noted that local eateries and regional businesses struggle to integrate into this system.

The CEO explained that a family-run establishment running a Darshini often does not understand why they need to run ads on third-party food delivery platforms to promote their food joint. This fundamental mismatch is leading the market to plateau, as existing players have failed to create genuine brands outside of chains.

Rapido views food delivery first and foremost as a logistics business that needs continuous optimization. Sanka emphasized: "Delivery companies are logistics companies. We don't make food. We don't run restaurants. We solve logistics."

The Power of the Network: Rapido’s Logistics Advantage​

The core strength for Rapido, beyond its food delivery unit, lies in its vast and efficient underlying logistics network. The company currently manages over 7.5 million orders daily across various services, including bike taxis, autos, and cabs.

Rapido maintains an active base of over 3 million captains (delivery riders). This robust rider community allows the platform to provide a seamless logistical flow. A single captain can ferry a passenger, pick up a food order from a nearby restaurant, or fulfill a hyperlocal parcel delivery based on real-time demand.

This strategic focus is why Rapido stays away from asset heavy business ventures like cloud kitchens or quick commerce, defining itself as an "asset-light logistics company." The bikes, Sanka noted, are no longer merely commuter transport; they are the backbone of this multi-faceted logistical network.

Bike Taxis: The Sustained Growth Engine​

While Ownly is Rapido's most recent venture, bike taxis remain the company's fastest growing and most critical mobility segment. Despite regulatory hurdles across various states, bike taxis have driven significant expansion for the platform.

In just 15 months, Rapido has expanded its reach from approximately 100 cities to nearly 500 locations. This growth pattern revealed that some high-growth markets were not metropolitan centers; one example cited was a town in Telangana whose order volume surpassed what another metro city experienced domestically.

Rapido's strategy is deliberate and patient. The company intentionally focuses on proving out each business before expanding further, having spent seven years refining bike taxis before moving into autos, then cabs, and finally food. For the next two years, the priority remains solidifying the food model rather than initiating yet another diversification.