Food distribution through a pilot in Bengaluru is unlikely to physically disrupt the duality of Rapido’s Forest, Zomato and Swigy, many brokerage has said in different notes, operational complexity, capital intensity and customer experiences are for business.Toi said on Monday, the Rapido based in Bengaluru is currently preparing to introduce its food distribution service with a fundamentally different pricing structure, selecting flat fees on the traditional percentage commissions charged in the restaurant. The move deployed the ride—hiling firm as a challenge for zomato and swigg, when the owner of the small restaurant is becoming increasingly outspoken about the growing aggregator cost.Rapido has planned to charge a certain Rs 25 on food orders below Rs 400 and Rs 50 for the above people. These fees are flat fees deducted from the order price paid by the restaurant to Rapido. Rahul Malhotra of Bernstein mentioned that Rapido plans to avail more than 3 million rider base and charge lower rates, “The new entry has failed in the past.” Malhotra cited pre -efforts by Amazon, Ola and ONDC that failed to scale due to limited restaurant selection, fragmented supply and weak customer experience. He said that India’s food distribution market, respectively 54% and 46% of market shares were dominated by Zomato and Swiggy, operated operating with more than 200,000 to 300,000 restaurants, which presents high obstacles to new players.Karan Turni of Elara Capital accepted Rapido’s cross-apertialization model, where its rider network can reduce incremental capital expenses. However, Torni warned that “the absence of a dedicated fleet may compromise on delivery experience, especially with the increasing sub -30 min delivery expectations.” Elara’s sensitivity analysis suggested that a moderate effect from Rapido can also cut the target value of eternal (ZOMATO) by 6%, revenue growth or assessment qualities should be weakened due to pricing pressure.HSBC analysts Yogesh Aggarwal, Pretake Maheshwari and Sagar Desai said that while the underlying cost structures of two-wheelers and food distribution are the same, the demand for food distribution demands continuous execution. He argued that “customer experience, ability to execute, and scales remain important challenges for Rapido”. Analysts also stated that long -term industry growth is already modeling, with most incremental demand, significant customer base is expected to come from high order frequencies rather than expansion.In his sector alert, Kotak institutional equities described the entry of Rapido as “no immediate effect” on incumbents. It was reiterated that Zomato and Swiggi have created significant operating mots in logistics, customer loyalty and dense restaurant partnerships, which is unlikely to share content share in the near period.
