Magicpin Partners With Rapido to Take On Zomato, Swiggy’s Food Delivery Dominance

According to a report by PTI, Magicpin and Rapido have teamed up to challenge the duopoly of Zomato and Swiggy. The third-largest food delivery service in the nation will connect its nationwide restaurant network to Ownly, a platform owned by Rapido. The collaboration will allow Rapido, which debuted Ownly in August and has been aiming to expand outside of Bengaluru, to access Magicpin's huge restaurant base.

Rapido's Ownly will have access to more than 80,000 eateries nationwide after the onboarding process is over, while Magicpin will have access to Rapido's delivery fleet in specific areas. A representative for Rapido told PTI that the company onboards eateries mostly directly through its merchant team, with partners like Magicpin accounting for a very minor portion of the total.

As a logistics provider, the company also collaborates with Magicpin and other companies in specific cities, supporting last-mile deliveries with its fleet of captains. Rapido is still committed to providing merchants with dependable, reasonably priced full-stack discovery and delivery solutions that guarantee a flawless experience for captains and consumers.

Why it is Not an Easy Ride for Alliance?

The Magicpin-Rapido coalition has a long way to go, even with the potential of disruption. Food delivery is still a challenging, low-profit industry where profitability depends on striking a balance between rider compensation, delivery expenses, and customer discounts.

The two must simultaneously concentrate on developing closer ties with restaurants and businesses, many of which already have difficulties with different delivery systems. Gaining the trust of customers is another difficulty. Due to their years of dependability and quickness, Zomato and Swiggy have strong brand loyalty; the new alliance must meet, if not exceed, these standards.

What Market Observers Feel?

While highlighting the significance of providing consumers with high-quality service, some of the close market analysts believe it's beneficial for the food delivery industry. They noted that it will provide more options and possibly better economics for both customers and restaurant operators. Interestingly, Zomato owns about 15% of Magicpin.

The sale of Swiggy's ownership in Roppen Transportation Services, the company that runs the bike taxi aggregator Rapido, was approved by the board in September for a total consideration of around INR 2,400 crore. Swiggy announced on July 31 that it is "actively re-evaluating" its investment in Rapido since the latter's plans to enter the food delivery market could create a conflict of interest.