Magicpin and Rapido join forces to challenge Zomato–Swiggy dominance in food delivery

Magicpin has partnered with Rapido in a move aimed at challenging the long-standing dominance of Zomato and Swiggy in India’s food delivery sector, according to a PTI report. Under the collaboration, Magicpin will connect its extensive nationwide restaurant network to Ownly, Rapido’s food delivery platform launched in August. The tie-up is expected to accelerate Rapido’s expansion beyond Bengaluru by giving it access to Magicpin’s large base of partner eateries.

Once onboarding is completed, Rapido’s Ownly will have access to more than 80,000 restaurants across the country, while Magicpin will gain the ability to tap into Rapido’s delivery fleet in select markets. A Rapido spokesperson informed PTI that most restaurants are brought onto the platform directly by its merchant acquisition team, with partners such as Magicpin contributing a small share of the overall onboarding pipeline.

Rapido already works with Magicpin and several other companies in specific cities as a logistics partner, supporting last-mile deliveries through its network of captains. The company stated that it remains committed to providing merchants with reliable, affordable end-to-end discovery and delivery solutions that ensure a seamless experience for both captains and customers.

Despite the potential to disrupt the sector, analysts say the Magicpin–Rapido alliance faces significant challenges. The food delivery business remains a low-margin, difficult market where profitability hinges on balancing rider payouts, delivery costs and customer incentives. The partnership must focus on building deeper relationships with restaurants and small businesses, many of which already struggle with multiple delivery platforms. Customer trust is another major hurdle, with Zomato and Swiggy commanding strong brand loyalty due to years of consistent performance.

Industry watchers remarked that increased competition is ultimately positive for the sector, offering more choice and potentially better economics for customers as well as restaurant partners. They also noted the unusual dynamic of Zomato holding around a 15% stake in Magicpin.

The partnership comes amid broader shifts in the ecosystem. In September, Swiggy’s board approved the sale of its stake in Roppen Transportation Services, the parent company of Rapido, for approximately ₹2,400 crore. Swiggy said in July that it was re-evaluating its investment in Rapido, given the emerging conflict of interest as Rapido’s food delivery ambitions continue to grow.