Ride-hailing platform Rapido is currently piloting an online food delivery app in Bengaluru, the company confirmed to Fortune India. The development comes amid reports that the platform is foraying into the food delivery business, competing with Swiggy and Zomato. 

“At Rapido, we are constantly looking at opportunities to scale our services and bring greater convenience to our users. In line with this vision, we are currently piloting an online food delivery app in Bangalore. The pilot aims to leverage our strong network of captains while assessing the potential to complement our existing services,” the company told Fortune India. It did not delve into the details of its plans, saying that the platform will share more details as the company moves forward with the pilot. 

With its entry in the food delivery space, Rapido envisions utilising its four-million-strong rider network to best utilise its idle slots, at virtually zero incremental capital expenditure, according to a report by Elara Capital. Rapido’s commission model is flat at 8-15%, compared to Zomato-Swiggy’s commission rate of 21-22%, which could elevate rider earnings and trim overall cost. Rapido may also have fixed a fee of ₹25 on orders less than ₹400 and ₹50 on orders more than ₹400. The brokerage firm also said that the food delivery businesses of both Swiggy and Zomato risk a 20% valuation cut if Rapido enters the league. 

Elara Capital also said that Rapido’s foray is different from Ola and the government’s ONDC, where last-mile connectivity was an issue. However, Rapido might not face this issue because of its rider network and its existing expertise in delivering food on ONDC. “These may improve Rapido’s execution in food delivery. A captain’s app may consolidate rides, parcels, and food orders in one job list, cross-utilising its fleet. Algorithms will assign tasks that maximise earnings, while ensuring minimum distance,” said Elara in a report.

However, the caveat, according to Elara Capital, is the cross-utilisation of its fleet to compete with Swiggy and Zomato riders. This is palpable in the under-30-minute delivery service of Swiggy’s BOLT, which demands a stronger grip over rider availability and servicing. Ride-hailing and equally demanding food delivery services would be a tall task to optimise and cross-utilise. Any failure could compromise the consumer experience significantly, marring the recurring business.