Ride-hailing giant Rapido has partnered with magicpin to onboard more restaurant partners on its new food delivery platform ‘Ownly’ and expand its footprint beyond Bengaluru.
As per a PTI report, under this collaboration, Rapido will use magicpin’s 80,000+ pan-India restaurant base to expand Ownly’s footprint. magicpin will have access to Rapido’s delivery fleet in certain locations.
“Rapido primarily onboards restaurants directly through our merchant team, with only a very small share coming via partners like magicpin. We also work with magicpin and others in select cities as a logistics provider, where our captain fleet supports last-mile deliveries…,” a Rapido spokesperson told PTI.
magicpin declined to comment on Inc42’s queries on the development.
The ride-hailing unicorn entered the foodtech segment with the launch of Ownly in August this year. At the time, its food delivery app was live in only Koramangala, HSR and BTM layout.
Currently, Ownly doesn’t charge any delivery fee as it looks to attract customers in a market dominated by the duopoly of Swiggy and Zomato.
Besides, Ownly is not charging platform fees. It charges a flat commission fee of INR 25 per order, plus GST, from the food outlets. This is in contrast with Zomato and Swiggy, which take a 25-35% commission per order from the restaurants.
Notably, Swiggy decided to exit Rapido’s cap table following the unicorn’s entry into the food delivery segment. It sold its entire stake in Rapido to Prosus and Westbridge for about INR 2,400 Cr. Including Swiggy’s share sale, Rapido is said to be in talks to raise about $550 Mn.
For magicpin, the partnership, which will allow it to access Rapido’s fleet, comes at a time when it is looking to double down on quick food delivery.magicpin rolled out magicNOW — its 15-minute food delivery service last year in December.
In May, magicpin said magicNOW was contributing 13% to the overall food delivery orders of the hyperlocal delivery startup, adding it expected it to account for 20% of its orders by the end of the ongoing fiscal.
Notably, the new service is powered by Velocity by magicpin, which aggregates third-party logistics providers, including Shadowfax, Dunzo, Rapido, Porter, OLA, and Zypp. The startup currently offers Velocity services to brands such as KFC, Burger King, and IGP gifting.
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