Rapido’s Ownly Enters Hyderabad With Zero-Commission Food Delivery Model
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Rapido’s food-delivery venture, Ownly, has launched in Hyderabad. It is targeting lower costs through a zero-commission model, smaller orders and its existing logistics network.
Rapido’s food-delivery venture Ownly has expanded to Hyderabad, its second market after Bengaluru, as it looks to build a lower-cost model around smaller orders and an existing logistics network.
The company is positioning the platform around a different cost structure as it seeks to make online food ordering more accessible to a wider customer base.
The venture is currently seeing an average order value (AOV) of around ₹250, compared with ₹400-420 for listed rivals Swiggy and Zomato.
How Is Ownly Trying To Lower Food Delivery Costs?
According to Rapido co-founder Aravind Sanka, delivery accounts for around 85-90% of the cost of running the food-delivery business for existing aggregators.
Ownly is therefore using Rapido’s existing technology, teams and logistics network rather than building these capabilities separately. The company operates on a zero-commission model and plans to primarily recover delivery costs through fees paid by consumers.
How Large Is Ownly’s Hyderabad Launch?
Ownly currently has 10,000 restaurants on its Hyderabad platform and plans to increase this to 30,000.
The company also plans to expand into major metros and tier 1 cities including Delhi NCR, Mumbai, Pune, Kolkata, Ahmedabad and Surat by the next quarter.
Ownly is betting that lower prices can bring more consumers to online food ordering. Around 15% of its new orders in Bengaluru are coming from users who had never ordered food online before, according to the company’s co-founder.
The company is already handling more than 50,000 orders a day in Bengaluru, around five months after its full-scale launch. However, it has not yet started charging delivery fees in the city and plans to introduce them as order volumes increase.
Is Ownly Entering Quick Commerce?
Ownly is not pursuing 10-minute food delivery, although around 25% of its Bengaluru orders are delivered within 20 minutes. Rapido is also staying away from quick commerce for now, with Mr Sanka describing food delivery as a more natural extension of its marketplace and asset-light logistics model.
At the company level, Rapido expects to become profitable in the next financial year, but an IPO is currently not on its radar.
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Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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