Uber’s Chief Executive Officer Dara Kholshedahi has said that Bangalore-based Rapido, and not Ola, is now the company’s most difficult rival in India, indicating a big innings in the country’s $ 13 billion ride-hinge market. “Ola used to be our main competition, now a tough competition in India is Rapido,” Khosrovshahi said in a teaser clip of his full interview by WTF on the podcast people of Zerodha’s co-founder Nikhil Kamath. Comment is a notable change in the competitive landscape. For years, Uber and Ola were seen battling for dominance as two veterans. But Rapido, established in 2015 and best known for its bike taxis, has gained constant ground with strength and focus on small cities.

Rapido currently works in over 100 cities and has expanded to auto rickshaws, cabs, parcel delivery and third-party logistics beyond bike taxis. The company has created a strong base among value-conscious users, especially in Tier to and Tier Three cities, analysts say it helps grow quickly because India had emerged from epidemic.

Just a few days before the Khosaroshahi’s comments, the Rapido faced a shock when the Central Consumer Protection Authority (CCPA), India’s top consumer Watchdog fined startup for alleged misleading and unfair trade practices. Despite the investigation, the rapido continues to diversify. Earlier this month, the company began testing a food distribution service for itself in Bengaluru. Launched under a subsidiary called Ctrlx Technologies, this service is currently available in selected neighborhoods including Koramangala, Tawrekere, Madiwala, HSR layout and Birerasandra.

Rapido’s entry into food delivery brings it into direct competition with swigy and zomato. According to Mint, Swiggi has already warned the shareholders that it can re -evaluate its investment due to “possible struggle of interests” as Rapido spreads in the same market.

Your own strategy is made around strength. Instead of charging a restaurant commission of up to 30 percent like its rivals, Rapido reportedly offers a fixed fee per order. This allows the platform to sell about 15 percent cheaper food than swigy or zomato. To keep the cost low, Rapido also planned to use its giant vehicle fleet to restrict and operate the delivery zone in a nearby restaurant.

The company is estimated to have access to about 10 million vehicles across the country, including five to six million two-wheelers. This fleet is already used for its taxi and courier services and can quickly lead to scaling. Rapido has also handled delivery for Swigy in the past, providing valuable insight into customer preferences and demand pattern.