Bengaluru: E-commerce giant Flipkart is preparing to enter India’s highly competitive food delivery market, with a pilot launch in Bengaluru expected as early as August 15, intensifying competition in a sector currently dominated by Swiggy and Zomato.
The Walmart-owned company has reportedly begun onboarding restaurants across Bengaluru ahead of the rollout. Industry sources say Flipkart is offering a commission of around 10 per cent, substantially lower than the 16 to 30 per cent typically charged by existing food delivery platforms.
Bengaluru chosen for pilot rollout
The Bengaluru pilot will serve as Flipkart’s testing ground before the service is expanded to other cities. The company plans to operate through the Open Network for Digital Commerce (ONDC), the government-backed initiative designed to create an open and interoperable digital commerce ecosystem.
Rather than launching nationwide immediately, Flipkart will first test the service with a limited group of users and refine the platform based on customer feedback.
Lower commissions could attract restaurants
The lower commission model is expected to appeal to restaurant owners, many of whom have long expressed concerns over the high fees charged by established food delivery platforms.
The initiative is reportedly being led by Ashish Vijayvergiya, former Chief of Staff to Flipkart Group CEO Kalyan Krishnamurthy. The food delivery service is expected to be available through both the main Flipkart app and a dedicated standalone application.
Competition in food delivery set to intensify
Flipkart’s entry comes soon after Rapido expanded into food delivery through its Ownly platform, adding fresh competition to the market.
While Swiggy has questioned whether ultra-low commission models are commercially sustainable due to delivery and operational costs, supporters of lower commissions argue that restaurants need improved profit margins to remain competitive.
If Flipkart successfully combines lower commissions with ONDC’s open-network approach, Bengaluru could become the launchpad for a major shift in India’s rapidly evolving food delivery industry.