Rapido and MagicPin have joined hands to take on Zomato and Swiggy. According to people familiar with the deal, MagicPin will now allow Rapido’s food delivery service, Ownly, to use its nationwide network of restaurants.
This partnership will give Rapido — which launched Ownly in August — access to MagicPin’s huge network of more than 80,000 restaurants across India, helping it expand beyond Bengaluru. In return, MagicPin will use Rapido’s delivery fleet in some areas.
“Rapido primarily on-boards 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…Our focus remains on building reliable, affordable, full-stack discovery and delivery solutions for merchants, while ensuring a seamless experience for customers and captains,” a Rapido spokesperson said.
Even though Rapido and MagicPin want to shake up the food delivery market, they still face big challenges. Food delivery has very low profit margins, and managing things like rider payments, delivery costs, and customer discounts is difficult.
They will also need to build strong relationships with restaurants, many of which already work with multiple delivery platforms.
MagicPin says it is the third-largest food delivery app in India, after Zomato and Swiggy.
The company has earlier supported apps like Paytm, Tata Neu, and Ola in launching their food delivery services through the ONDC network. It claims to handle over 1.5 lakh orders every day.
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