Rapido is not the first ride-hailing platform to make its foray. Earlier, Uber tried with Uber Eats but failed and exited with disappointment. Ola too tried with Cafe but had to shut a year after its launch.
In 2022, e-commerce company Amazon discontinued its pilot food delivery business, Amazon Food in Bengaluru. Launched in May 2020, it partnered with restaurants and expanded the service in Bengaluru, but it discontinued two years later.
“So far, new entrants (ONDC and direct ordering platforms) have failed to scale up meaningfully, due to no last mile control and reliance on 3P logistics. Upon sustained execution and scale, Rapido could challenge stable take-rates and profitability of the incumbents,” brokerage firm Elara Capital added.
Meanwhile, BigBasket is also planning to launch its 10-minute food delivery services by the end of this fiscal. According to Research And Markets, India’s online food ordering and delivery market, which was valued at $31.77 billion in 2024, is projected to reach $140.85 billion by 2030, rising at a CAGR of 28.17%. Experts point out that there is enough space for new players but it depends on how they manage to scale-up meaningfully.