Rapido is setting an ambitious target for its food delivery business, with co-founder and CEO Aravind Sanka arguing that the online food delivery market in India must expand significantly for the company’s latest venture to succeed. According to Sanka, the sector needs to grow to 100 million users over the next three years, a goal he believes is essential not only for Rapido but for the broader ecosystem.
Speaking about the company’s strategy, Sanka said, “If the number of people ordering food online doesn’t reach 100 million in three years, there is no reason for Rapido to exist.” He added that Rapido’s objective is not to compete for the existing customer base but to bring millions of new users into the online food delivery market.
Rapido recently entered the food delivery segment through its platform, Ownly, positioning it as an alternative to the existing market leaders. Rather than relying on heavy discounting or building a large restaurant network, the company is focusing on affordability and leveraging the logistics infrastructure it has built over the years.
Sanka believes the current food delivery model has become expensive for both consumers and restaurants. According to him, higher commissions, advertising costs and price mark-ups have made online ordering less attractive, particularly for value-conscious customers. He argued that reducing the overall cost of ordering food is the key to unlocking the next phase of growth in the category.
Explaining Rapido’s approach, Sanka said the company intends to maintain menu prices at the same level as those offered by restaurants while generating margins through operational and logistics efficiencies. He also emphasized that Rapido views itself primarily as a logistics company, with its delivery network serving as the foundation for multiple business verticals.
The company already operates a large rider network that supports passenger mobility, parcel deliveries and other logistics services. Rapido plans to use this network more efficiently by allowing delivery partners to handle different types of orders throughout the day based on demand.
Sanka also questioned whether the existing food delivery ecosystem has done enough to expand the market beyond urban consumers. He said the current model largely works for established national restaurant brands that can afford advertising and platform commissions, while many smaller local eateries remain underserved.
By focusing on lower delivery costs and operational efficiency instead of higher commissions, Rapido aims to attract a wider customer base and encourage more restaurants to participate in online food delivery. The company believes that making food delivery more affordable can help grow the market substantially over the coming years, rather than simply redistributing customers among existing platforms.
