India’s food delivery landscape—long dominated by the duopoly of Zomato and Swiggy—is witnessing a powerful new collaboration. Hyperlocal discovery platform magicpin and ride-hailing major Rapido have joined forces in a strategic partnership that aims to reshape the sector and give restaurants as well as customers a meaningful alternative. At the heart of this alliance lies Ownly, Rapido’s newly launched food delivery platform, which went live in August and has so far operated only across select Bengaluru neighborhoods.

With this partnership, magicpin will plug its nationwide network of more than 80,000 restaurants directly into Rapido’s Ownly, dramatically accelerating the platform’s expansion plans beyond Bengaluru. In return, magicpin gains access to Rapido’s extensive delivery fleet, strengthening its logistics infrastructure in specific locations—especially as it doubles down on its fast-growing quick-food services.

People aware of the development describe this collaboration as one of the most significant counter-moves against India’s entrenched food delivery giants in recent years. Yet, while the opportunity is large, the road ahead is far from simple.

How the Partnership Aims to Work

The integration between magicpin and Rapido’s Ownly is designed as a two-way value exchange:

1. Access to 80,000+ Restaurants for Rapido

Once onboarding is complete, Ownly will gain the ability to list and serve food from over 80,000 restaurants across India already available on magicpin’s platform. For a company that has been operational in food delivery for only a few months, this is a monumental scale boost.

2. Delivery Support for magicpin

magicpin, which has been actively building its logistics backbone through a network of third-party providers, will gain additional capacity through Rapido’s captain fleet in select markets. This enables faster last-mile delivery, especially in high-demand urban zones.

3. Dual Roles: Merchant Onboarding + Logistics Provider

A Rapido spokesperson, responding to queries via email, explained how the partnership fits into their operating model:

“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.”

Reiterating the company’s long-term direction, the spokesperson added:

“Our focus remains on building reliable, affordable, full-stack discovery and delivery solutions for merchants, while ensuring a seamless experience for customers and captains.”

magicpin did not respond to PTI’s email seeking comments on the arrangement.

The Steep Climb Ahead: Why Food Delivery Is Still a Tough Terrain

Despite the enthusiasm surrounding the partnership, the magicpin–Rapido alliance faces the harsh realities of India’s food delivery economics.

1. Thin Margins

Food delivery is notoriously difficult to operate profitably. Every order must balance:

• rider earnings

• delivery distance and fleet costs

• customer expectations around speed

• discounts and platform commissions

A small fluctuation in any of these can turn profitability into losses.

2. Brand and Restaurant Relations

Restaurants today often operate across multiple delivery platforms. Many struggle with high commissions, fluctuating demand, and operational dependencies. A new platform, even with strong partners, must convince restaurants to invest time and effort into onboarding, training, and order management.

3. Consumer Loyalty

Zomato and Swiggy enjoy years of brand presence, reliability, trust, and loyalty. Their aggressive campaigns and subscription services have created entrenched customer habits. Any challenger must match, if not surpass, these standards in:

• delivery speed

• app experience

• reliability

• pricing

Restaurant Industry’s Response: Hopeful but Cautious

PTI reached out to several restaurant chain owners listed on magicpin to understand how the industry perceives this partnership.

“A more level-playing field” – Empire Restaurants

Shakir Haq, CEO of NKP Empire Ventures, which manages the well-known Empire Hotels & Restaurants chain, views the development as a positive shift:

“India’s food delivery ecosystem is maturing and opening up more for players, thereby creating a level-playing field for restaurants. magicpin being there for a long time, being successful and Rapido also coming along, it should be a great advantage for restaurants,”

Haq added that such collaborations widen opportunities for restaurants to reach new customer segments.

“More choice and better economics” – Truffles

Avinash Bajaj, Managing Director at Truffles Hospitality, echoed similar optimism:

“magicpin is there then we will automatically be there because they (Rapido’s Ownly) will just use magicpin as their partner.”

He noted that the tie-up could bring more options for customers and potentially better margins for restaurants, addressing long-standing concerns around profitability.

Industry Dynamics: Stakes, Exits, and Strategic Shifts

The partnership emerges against the backdrop of shifting strategies among major food delivery players.

Zomato’s Strategic Stake in magicpin

Zomato holds roughly a 15% stake in magicpin, giving it indirect exposure to this unfolding partnership—even as magicpin now collaborates with a direct Zomato competitor.

Swiggy’s Exit from Rapido

In September, Swiggy’s board approved the sale of its entire stake in Rapido’s parent company Roppen Transportation Services for nearly ₹2,400 crore.
Earlier, on July 31, Swiggy stated it was:

“actively re-evaluating its investment in Rapido, as a potential conflict of interest may arise due to the latter’s intention of entering the food delivery space.”

This exit clears the path for Rapido to participate in food delivery aggressively without shareholder conflicts.

Ownly: Rapido’s Early Moves in Food Delivery

Rapido entered the foodtech segment in August with the launch of Ownly, which initially served only Koramangala, HSR Layout, and BTM Layout in Bengaluru.

Its pricing structure is designed to stand out:

1. Zero Delivery Fee

Ownly currently does not charge customers any delivery fee—a move aimed at rapidly onboarding users who are accustomed to rising delivery charges on Zomato and Swiggy.

2. Zero Platform Fee

Platforms like Zomato and Swiggy often charge platform fees on every order. Ownly has removed this friction.

3. Flat Commission for Restaurants

Restaurants are charged a flat ₹25 per order plus GST, drastically lower than the 25–35% commission typically charged by industry incumbents.

This low-cost structure appeals strongly to restaurant partners, especially smaller establishments struggling with high commissions and narrow margins.

magicpin’s Larger Strategy: Quick Delivery and Aggregated Logistics

For magicpin, the collaboration aligns with its growing ambitions in the food and hyperlocal delivery space.

magicNOW – 15-Minute Food Delivery

Launched in December last year, magicNOW promises 15-minute food delivery. By May, it contributed 13% of all food delivery orders on the platform.
magicpin expects magicNOW to account for 20% of total orders by the end of the current fiscal.

Velocity: magicpin’s Logistics Layer

magicNOW runs on Velocity, magicpin’s logistics aggregation infrastructure that integrates services from:

• Shadowfax

• Dunzo

• Rapido

• Porter

• OLA

• Zypp

This network powers deliveries for major brands such as:

• KFC

• Burger King

• IGP gifting

Access to Rapido’s captain fleet through this partnership strengthens Velocity’s capacity further.

Rapido’s Growth Plans and Financial Position

Rapido, now valued at USD 2.3 billion after a recent secondary share sale, appears to be preparing for a significant expansion phase.

1. IPO Aspirations

The company is reportedly working towards a future IPO, bolstered by its strong valuation and widening service portfolio.

2. Controlled Cash Burn

Compared to its competitors, Rapido maintains a lower cash burn, suggesting operational discipline.

3. Profitability Focus

Reports indicate Rapido is on the verge of achieving full-year operational profitability, an uncommon feat in the food delivery sector.

4. Brand Building

The company continues to invest in brand campaigns aimed at strengthening its presence before scaling further.

What the Partnership Means for India’s Food Delivery Ecosystem

The magicpin–Rapido collaboration brings together:

• magicpin’s nationwide restaurant reach

• Rapido’s massive delivery fleet and mobility expertise

• Ownly’s low-cost, disruptive commission model

• growing restaurant appetite for alternatives

• customer frustration with high prices and fewer discounts

Combined, these factors position the partnership as a serious challenger—one capable of nudging a tightly controlled sector towards more competition, better pricing, and improved restaurant economics.

Final Thoughts

The partnership between Rapido’s Ownly and magicpin marks a defining moment in India’s food delivery journey. By leveraging magicpin’s extensive restaurant network and Rapido’s delivery strength, the two companies aim to build a scalable, cost-effective, and reliable alternative to Zomato and Swiggy.

Success, however, will depend on their ability to maintain reliability, deliver value to restaurants, and win customer trust—areas where the incumbents have set a high benchmark.

Still, as Rapido inches closer to profitability and plans for a future market listing, this alliance could play a pivotal role in shaping both its trajectory and the competitive landscape of India’s fast-evolving food delivery market.

With inputs from agencies

Image Source: Multiple agencies

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