Swiggy recently sold its entire ₹2,400 crore stake in Rapido, which now belongs to Prosus and WestBridge Capital. This move comes at an interesting time, as Rapido, previously known for bike-taxi and auto services, has now decided to enter the food delivery space.
Earlier, Rapido and Swiggy shared a kind of indirect partnership. Rapido’s riders were often used to support Swiggy in food and grocery deliveries, making the two companies collaborators in some ways. But now, the scenario has changed. With Rapido launching its own food delivery service, it has become a direct competitor to Swiggy and Zomato. Recognizing the potential conflict of interest, Swiggy chose to exit its investment while securing a profitable return.
For Swiggy, the sale brings in a significant cash inflow. This money can now be reinvested into core operations like Instamart and other delivery services. Moreover, stepping away from Rapido removes any potential conflicts of interest and allows Swiggy to focus fully on its own growth. The risk, however, is that if Rapido’s food delivery business flourishes, Swiggy might miss out on a growing opportunity in the market.
For Rapido, this move opens a major growth opportunity. With its large network of riders, Rapido can scale quickly in the food delivery segment. The challenge lies in competing with well-established players like Swiggy and Zomato and winning over customers with consistent service and reliability.
On this matter: A consumer’s point of view
To capture the consumer perspective, I spoke to Instagram influencer Pinks Shah. She shared her thoughts:
“Rapido entering the food delivery market will definitely increase competition. Until now, Swiggy and Zomato were the main players, but now Rapido is entering with its fast bikes. Customers will directly benefit faster deliveries, better discounts, and attractive deals. As competition grows, service quality also improves automatically. Overall, this is healthy competition that will benefit users.”
Rapido’s entry into food delivery marks a new chapter in the Indian market. While it presents a challenge for Swiggy, it creates opportunities for consumers. Increased competition often means better service, faster deliveries, and more attractive offers. In the long run, this rivalry is likely to make the Indian food delivery space more dynamic, customer-friendly, and exciting.
