Feeling hungry, Rapido it! Not exactly Rapido, though. Your usual bike-taxi and logistics services platform will now deliver the food with its newly launched app Ownly. Yes, it has wheeled its way into the food delivery race, launching Ownly, a food app that doesn’t want your wallet to run for cover every time you order lunch. You have one more alternative in the market, mostly dominated by major food delivery apps like Swiggy and Zomato.
What’s the difference, though? They promise pocket-friendly plates for your hunger pangs. This surely challenges the Swiggy-Zomato duopoly as Ownly promises to bring affordability, transparency, and a new model for restaurant partnerships. Let Corporate Soldiers home deliver every its and bits to you!
What’s Special About Rapido Ownly?
Everyone wants affordable meals at their fingertips. However, we always pay more than the app initially shows. This is where Ownly differs from the usual popular platforms. It is the platform that mandates that restaurants provide you with at least four dishes priced at Rs 150 or below. Here, staples like chapati, rice, and eggs are available for under Rs 100. This specialty of Ownly targets both urban and price-sensitive consumers and gives them access to affordable alternatives without inflated online prices. Ownly asks restaurant partners to keep most dishes under Rs150, with rice and chapati sometimes priced lower than a pack of chewing gum. Hence, you can enjoy guilt-free meals.
No Commission Model
What about commission then? Unlike Swiggy and Zomato (where commissions can climb to 16% to 30% per order), Ownly lets restaurants pocket the proceeds and does not charge any commission from them. Also, Rapido levies a flat delivery fee per order, and it will be paid mostly by restaurant partners. It means affordable food for people and affordable businesses. How? This way, eateries can maintain menu prices comparable to their offline counterparts and avoid the usual markups on delivery platforms.
Ownly promises the prices you see are the prices you get. No packing charges, no platform fees, no surplus charges when you checkout. The only fee applicable is the GST. For orders above ₹100, restaurants pay a flat delivery fee of ₹25 plus GST, and for orders below ₹100, the fee is ₹20 plus GST.
What About Delivery Fees?
Ownly’s delivery fees are refreshingly transparent, which means there will be no secret charges lurking behind your samosas, dosas, manchurian or anything you desire. Ownly charges no platform fee and restaurants foot the delivery bill. Here, delivery charges remain a fixed price of ₹25 plus GST for meals above ₹100, and ₹20 plus GST for orders Rs100 or less.
How Does This Business Model Work?
You get happy food deliveries, the restaurant gets liberation from commission fee, but about Ownly? Restaurants pay the delivery fees directly to riders, and customers only pay for food and applicable GST. This is the polar opposite of what other apps do. They often add platform fees, packaging charges, and commission costs, and all these charges mean higher prices in the end for customers and lower margins for eateries or restaurants. So, how does this business model work if restaurants are keeping more revenue per order?
- It works on the volume of orders, which means to attracting a large base of price-sensitive users. Since there is no commission on their earnings, more restaurants will opt for their services.
- Ownly’s profits will rely on scalability, which means earning through subscription fees. As the business scales, Rapido is planning to introduce a fixed subscription fee for restaurants. This negates the need for variable commissions.
- Ownly asks restaurants and eateries the same menu prices for both platforms online and offline, so restaurants don’t have to inflate menu prices to offset commissions. It’s great for consumers as well as beneficial for the brand reputation and transparency, as consumers will trust them.
| Platform & Coverage | Avg. Commission | Avg. Delivery Fee | Avg. Meal Price | How Does it Work? |
| Ownly(Selected areas, Bengaluru) | 0% | ₹28 | ₹125 | Zero commission, delivery in 4 km by restaurant |
| Swiggy(Major Cities, India) | 16-30% | ₹38 | ₹150 | High commission, Delivery covered by the platform |
| Zomato(Major Cities, India) | 16-30% | ₹38 | ₹150 | High commission, Delivery covered by the platform |
Why Zomato And Swiggy Are Getting Worried?
People are delighted, restaurants are rejoicing, but what about the competitors, Zomato and Swiggy? They must be a tad worried because Ownly’s is breaking all the food delivery rules they wrote! For years, these food-delivery giants thrived on commissions, charged restaurants from 16% to 30% per order and surplus charges. Their business model was never transparent for customers as many restaurants had to raise their online prices to maintain their profit margins. Remember how many times people complained about this disparity? Ownly surely took account of it. So, no commissions, no inflated menu prices, and no extra fees for customers.
Hence, restaurants can keep more money per order and keep the same prices we get in person. This is why Zomato and Swiggy are getting worried because not only does it shake up their food delivery duopoly, but also makes Ownly their strong competition, as here, small businesses are getting a fair slice of the pie.
Major Worry For Swiggy
Another reason especially that Swiggy is nervous because it owns 12% of Rapido and led a $180 million funding round in 2023. But with no exclusivity clause tying hands, Rapido is free to stir the pot and the rivalry game has already just begun. Now, since Rapido is pushing its own food delivery app in the market, Swiggy needs to reassess its partnership over these conflicts of interest.
Where is It Operating?
We know you are getting excited because of this news, but you need to be a little patient as Ownly is limited to Bengaluru in its initial phase. It has launched in selected locations of the city, such as Koramangala, BTM Layout and HSR Layout. The platform has its collaborations with leading chains like Faasos, Wow! Momo, Eatfit, and Krispy Kreme and is ready for your midnight munchies and hunger pangs. For now, Rapido is using its existing bike-taxi fleet and logistics infrastructure for deliveries. It also indicates that Ownly has scalability and cost-effectiveness in the long term.
Don’t Worry, You Can Ownly it Soon!
No need to frown, Rapido’s Ownly has plans to operate in other cities as well. However, whenever it happens, we hope Ownly can maintain this model in other cities as well. As for now, Bengaluru people are ready to explore Ownly’s lower costs, transparent pricing, and true online-offline price parity. For now, it’s all about simple math, simple food, and no surprise charges.
So, food cravers! Get ready because India’s food delivery scene is about to get spicy. After years of Swiggy-Zomato monopoly, there’s finally a platform that remains people-worthy, not just business-worthy.
So, tell us, ‘Are you hungry yet, Bengaluru people?’ Fire up Ownly, and let Rapido’s new food app bring affordable food for you! Corporate Soldiers wishes you happy feasting!
