Rapido’s entry into food delivery is unlikely to disrupt the Zomato-Swiggy duopoly, say analysts, pointing to the operational complexity of the business and deep-rooted market dynamics that favour incumbents and pose steep challenges for new players trying to scale.
According to a research note by Bernstein on June 11, similar attempts in the past—by Amazon, Ola and the government-backed ONDC—have failed to gain meaningful share. These players struggled with poor restaurant selection, inconsistent customer experience, and the complexities of managing fragmented supply chains in India.
HSBC, in a separate report, echoed similar concerns. It said while the economics of two-wheeler ride-sharing are comparable to food delivery, maintaining customer experience, execution, and achieving scale remain significant hurdles.
The report noted that while new entrants may be able to acquire the industry’s tail-end customers—where margins are already thin—they are unlikely to disrupt the duopoly at the top.
