India’s food delivery landscape, long defined by a duopoly of Zomato and Swiggy, may finally face a credible third contender. Ride-hailing unicorn Rapido and hyperlocal discovery and commerce platform Magicpin have joined hands in a strategic partnership aimed at reshaping the economics of food delivery with a bold new entrant—Ownly.
Magicpin-Rapido alliance combines the company’s 80,000+ restaurant network with Rapido’s expansive delivery fleet, setting the stage for a nationwide rollout of Ownly, Rapido’s new food delivery app launched in August 2025.
Rapido-Magicpin Alliance: Scaling Ownly Nationwide
Under the partnership, Magicpin will plug its vast restaurant base into Rapido’s Ownly platform, enabling the latter to expand swiftly beyond its pilot zones in Bengaluru. In return, Magicpin gains access to Rapido’s bike taxi fleet for last-mile deliveries in select markets.
According to both companies, Rapido and Magicpin collaboration aims to achieve what many have deemed impossible in recent years—introducing a third major player in India’s tightly contested, low-margin food delivery industry.
A Rapido spokesperson emphasized that while most restaurants are onboarded directly through its merchant team, Magicpin acts as an important strategic ally:
“We also work with Magicpin and others in select cities as logistics providers, 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.”
Ownly’s Value Proposition
Where Zomato and Swiggy command commissions of 25–35% per order, Rapido’s Ownly charges a flat INR 25 plus GST. The model eliminates platform fees, delivery fees for customers, and packaging charges during its launch phase. For restaurants, that translates into better margins and price transparency—a welcome shift in a market long criticised for its high fees and opaque pricing.
Restaurants retain full control over menu pricing and gain access to customer data—something not typically offered by incumbents. Menu prices mirror offline rates, reducing markups and positioning Ownly as a more affordable option for consumers. Most menu items are priced below INR 150, catering to India’s vast base of price-conscious diners.
Rapido’s operational advantage lies in leveraging its bike taxi fleet for deliveries—lowering costs, improving delivery times in dense urban zones, and utilising idle fleet capacity. This dual-use model enhances both efficiency and profitability.
Magicpin’s Momentum
Magicpin brings more than just restaurant partnerships to the table. Its Velocity logistics platform aggregates multiple delivery providers—including Shadowfax, Dunzo, Rapido, Porter, Ola, and Zypp—creating a multi-fleet ecosystem that enhances flexibility and reach.
The company’s MagicNOW vertical, launched in late 2024, already contributes 13% of its total food delivery orders and is on track to hit 20% by year-end. Magicpin’s ability to integrate multiple logistics partners gives Rapido’s Ownly a ready-made backbone for scaling operations.
In addition, Magicpin’s experience powering ONDC-based food delivery for platforms like Paytm, Tata Neu, and Ola positions it as a proven partner in building distributed, low-cost food networks.
Market Dynamics: Breaking the Duopoly Barrier
Despite the promise of disruption, both companies face formidable challenges. Zomato and Swiggy not only dominate market share but also enjoy entrenched consumer trust built on reliability, coverage, and speed. Food delivery remains a low-margin business, with razor-thin unit economics balancing delivery costs, discounts, and rider payouts.
However, the Ownly–Magicpin model introduces fresh variables:
- Lower commissions may reduce the need for restaurants to inflate prices.
- Shared logistics infrastructure can increase delivery density and reduce idle time.
- Transparent pricing and no-surge policies may resonate with both merchants and consumers weary of “pay-to-play” visibility and surcharges.
The Broader Financial Picture
The timing of the partnership aligns with major financial shifts. In September, Swiggy sold its entire stake in Rapido to Prosus and Westbridge for around INR 2,400 crore, marking a clean exit from a potential conflict of interest. Following the sale, Rapido’s valuation doubled to USD 2.3 billion (~INR 20,500 crore), and reports suggest the company is in talks to raise an additional USD 550 million (~INR 4,900 crore) to fund Ownly’s nationwide expansion.
Interestingly, Zomato still holds a 15% stake in Magicpin, adding another layer of intrigue to the competitive dynamics ahead.
Verdict: The Third Force in Indian Food Delivery
Magicpin–Rapido alliance represents more than just a tactical collaboration—it could signal the beginning of structural diversification in India’s food delivery sector.
The combination of Magicpin’s hyperlocal discovery ecosystem and Rapido’s last-mile delivery infrastructure is strategically sound. By tackling both sides of the margin equation—restaurant commissions and delivery costs—the duo could deliver meaningful value where incumbents have struggled to do so sustainably.
If Ownly can maintain service quality while scaling its merchant and rider network, Rapido and Magicpin partnership could not only dent Zomato-Swiggy’s dominance but also redefine how affordability and transparency shape consumer loyalty.
Final Words
Magicpin and Rapido’s partnership marks a potentially transformative moment for India’s food delivery ecosystem. By merging Magicpin’s vast merchant network with Rapido’s delivery strength and Ownly’s low-cost, transparent model, the two companies are positioning themselves as the first credible “third front” in an industry long monopolized by two players.
As food delivery evolves beyond discounts and brand wars, the next phase of competition will likely hinge on operational efficiency, merchant empowerment, and sustainable economics—areas where the Magicpin–Rapido alliance seems determined to lead.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.