Flipkart Eyes Food Delivery Domination

Flipkart is preparing to enter India's highly competitive food delivery sector, aiming to disrupt the duopoly held by Zomato and Swiggy. The Walmart-owned company is currently testing its food delivery service internally with a growing number of employees, utilizing a dedicated fleet from its logistics arm, Ekart. This new offering, branded 'Eat-in by Minutes,' is drawing from restaurants listed on the government-backed ONDC network and those directly partnered with Flipkart.

The Indian food delivery market is experiencing robust growth, projected at 18% to 20% annually. However, it still represents a small fraction of the overall food services industry. Flipkart's entry faces the challenge of competing with established giants like Zomato and Swiggy, who together serve a vast customer base. Previous attempts by Amazon and Google to penetrate this market have not been successful.

Restaurants are expressing optimism about new entrants like Flipkart, anticipating lower commission rates compared to the current 20% to 25% charged by incumbents. Flipkart has reportedly proposed a base commission of around 10%. This could significantly reduce the overall costs for restaurants, which currently spend up to 40% to 50% of order value on commissions and promotional activities. However, it remains to be seen if these potential savings will be enough to attract customers away from established platforms.

Flipkart plans a public launch by the end of October and expansion to five to six cities by the close of 2026. This strategic push into food delivery coincides with Flipkart's ongoing efforts to enhance customer engagement on its app, amid intensifying competition in India's e-commerce landscape. The company's long-awaited stock market listing also remains a point of consideration.