Magicpin–Rapido Alliance Sets Stage for New Challenge to Zomato-Swiggy’s Food Delivery Dominance

For nearly a decade, the online food delivery market in India has effectively been controlled by two major players—Zomato and Swiggy. Their reach, brand loyalty and operational scale have turned them into the default choice for millions of consumers ordering meals every day. Now, a new alliance is preparing to disrupt this duopoly.

In a significant development, magicpin and Rapido have joined hands to strengthen the presence of Rapido’s food delivery platform, Ownly, marking a strategic attempt to build a credible third competitor in the market. According to people aware of the collaboration, magicpin—currently India’s third-largest food delivery service—will integrate its extensive restaurant network into Rapido’s Ownly app, offering the bike taxi company access to more than 80,000 restaurants across the country.

Ownly, launched in August, has so far been available only in Bengaluru. Through this partnership, Rapido is seeking rapid expansion into new geographies, while magicpin will gain operational benefits from Rapido’s existing delivery fleet in select locations.

Rapido Challenges Swiggy-Zomato Duopoly

A Rapido spokesperson confirmed the collaboration in response to PTI queries, stating that the company continues to onboard restaurants directly and maintains partnerships like magicpin primarily for delivery support.

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

magicpin did not respond to a request seeking comment.

Navigating a Highly Competitive and Low-Margin Space

Despite its potential, the partnership enters one of the toughest business segments in the digital economy. India’s food delivery market operates on thin margins, where high rider payouts, fuel and logistics expenses, and customer discount expectations make profitability elusive.

The alliance will also need to persuade both restaurants and customers to adopt a new platform. Many restaurants already juggle multiple delivery services, while customers have developed strong loyalty toward faster delivery times, wider choices, and structured rewards programs that Zomato and Swiggy have refined over the years.

Consumer perception, operational consistency and competitive pricing are seen as key to any chance of success.

Restaurant Operators See Positive Competitive Impact

To understand industry reaction, PTI spoke with restaurant chains listed on magicpin. Many believe that a stronger alternative to the existing market leaders will help improve business dynamics.

Shakir Haq, CEO of NKP Empire Ventures, which owns the Empire Hotels & Restaurants chain, said the market is entering a more mature phase.

“India’s food delivery ecosystem is maturing and opening up more for players, thereby creating a level-playing field for restaurants,” Haq said, noting that the partnership could help businesses reach untapped customer bases.

Avinash Bajaj, Managing Director at Truffles Hospitality, expressed a similar view, suggesting that wider platform availability would offer both consumers and restaurants more choices and the possibility of better commercial terms.

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

Competitive Crossovers Add Intrigue

The strategic nature of this development is underscored by equity structures and recent investment decisions involving the current market leaders.

Zomato holds approximately 15 percent stake in magicpin. Meanwhile, Swiggy exited its investment in Rapido in recent months, selling its stake in Roppen Transportation Services for around ₹2,400 crore. Earlier, Swiggy had indicated it was reconsidering its involvement due to a potential conflict of interest stemming from Rapido’s entry into food delivery.

These interconnected relationships reflect how critical the expanding market remains for all players involved.

Can the Duopoly Be Challenged?

While the partnership between magicpin and Rapido undoubtedly strengthens the case for a third national competitor, it faces complex operational, economic and brand-driven hurdles. Still, increasing competition could benefit restaurants seeking better margins and customers expecting improved value and service.

If the alliance succeeds in delivery efficiency, network expansion and consumer trust-building at scale, the Indian food delivery landscape could shift from a two-player dominance to a more balanced market—with Ownly emerging as a meaningful contender.

The coming months will determine whether this collaboration reshapes the dynamics of India’s rapidly growing food delivery business or remains an ambitious attempt in a market known for tough economics and demanding customers.