Swiggy on July 31 commented on Rapido's potential entry into the food delivery business. Notably, Swiggy owns a minority stake of nearly 12 percent in the ride hailing platform.
Replying to a question on the potential conflict of interest that may arise if its investee company enters into its main business, Swiggy's management said that it is "actively re-evaluating" its investment in light of the recent developments.
"Rapido, one of our investee companies, has announced their intention to enter the Food delivery space. Having scaled up from a bike-taxi player to a full-fledged mobility platform, Rapido is now the largest mobility player in India by rides, and has been a disruptor in its space. As a shareholder, we are extremely happy with their success and value-creation; but do acknowledge a potential conflict of interest that may arise in the future. Our ~12% minority stake has appreciated significantly since our investment (basis incoming interest) and we are actively re-evaluating our investment due to the above developments," Swiggy said.
The food delivery conglomerate added that it is very attentive to new trends and competitive dynamics. "Food delivery continues to attract new competition, with new players or models trying to enter this high-frequency, high customer-intent category every year," the firm said.
The key question is what will new competition unlock for the consumer which Swiggy is not already doing at scale, the company added. Swiggy's new offerings and the ones it will roll out will ensure that competition does not get a clear opening, it further said.
"If there's a new model that can unlock incremental growth in the category, we will definitely be super agile and make sure we participate in it very quickly. As always, an understanding of the consumer, intent to innovate, and an ability to scale with sustainable economics will matter," Swiggy said.
Rapido is planning to enter the food delivery business, leveraging its 3 million-strong fleet and charging restaurants a lower take rate of 8–15 percent. Zomato and Swiggy charge 18–20 percent.
According to Rapido's pitch to restaurants, reviewed earlier by Moneycontrol, the new vertical, called 'Ownly', will focus on meals priced below Rs 150 and offer a zero-commission model. The company is positioning itself as a low-cost platform for 'Bharat', promising offline-equal pricing, minimal cost layers, and no packaging fees or platform commissions.
Food and grocery delivery platform Swiggy on July 31 reported that its net loss widened almost 96 percent year-on-year (YoY) to Rs 1,197 crore in the first quarter (Q1) of financial year 2025-26 (FY26), up from Rs 611 crore in the same period a year ago.
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