Bengaluru-based ride-hailing giant Rapido has officially integrated its innovative food delivery service, 'Ownly,' directly into its primary app. This strategic move, announced on Monday, brings Ownly's unique zero-commission model to Rapido's vast monthly active user base, allowing existing users to order food without switching applications.
Ownly's operational model deviates significantly from traditional food delivery platforms. Restaurants utilizing Ownly pay absolutely no commission on orders, enabling them to retain a substantially larger share of their revenue. This approach aims to address what co-founder Aravind Sanka describes as a major structural challenge within the food delivery industry.
Solving Industry Challenges with a Zero-Commission Model
Aravind Sanka, who co-founded both Rapido and Ownly, emphasized the rationale behind the platform's design. "Ownly was created to solve one of the biggest structural challenges in food delivery, making the business work better for restaurants without compromising customer experience," Sanka stated. He added, "Our zero-commission model has shown that restaurants can retain more of every order while customers enjoy honest pricing without hidden platform fees."
The integration targets a significant market opportunity: India's ride-hailing user base is nearly double the size of its online food ordering user base. Rapido aims to introduce food delivery to millions of its existing users who may not yet use other food delivery apps, leveraging its established presence.
How Ownly Leverages Rapido's Network for Sustainable Growth
The operational mechanics of Ownly are designed for efficiency and sustainability. By utilizing Rapido's extensive existing rider network, Ownly can achieve structurally lower delivery costs. This cost-effectiveness is crucial for maintaining a zero-commission model without transferring additional financial burdens onto restaurants or inflating customer prices.
Furthermore, the integration benefits Rapido's riders by improving their utilization, especially during off-peak hours when demand for mobility services might be lower. This creates a more consistent income stream for riders and optimizes the overall logistics network.
Currently, Ownly boasts a network of nearly 20,000 restaurants and is actively expanding its reach, signaling a significant shift in the competitive landscape of India's food delivery sector.