Flipkart is set to enter India’s online food delivery market by launching its service in Bengaluru by mid-August, charging restaurants a commission of 10-11% per order, according to inc42.com. This move marks Flipkart’s formal entry into a space dominated by Swiggy and Zomato, which typically charge commissions ranging from 25% to 35%.
The company has started onboarding restaurants across Bengaluru in preparation for the pilot launch. Flipkart is evaluating whether to offer the service through its main app, a standalone app, or both. It will leverage the Open Network for Digital Commerce (ONDC) to bring restaurant partners onto its platform, aiming to attract those dissatisfied with current commission rates, inc42.com reported.
Flipkart’s lower commission model addresses growing discontent among restaurant owners who have criticized the high fees and advertising costs imposed by Swiggy and Zomato. This discontent has been particularly visible in Bengaluru, where restaurant associations have urged Swiggy to reconsider its commission structure by August 15. Flipkart’s entry could intensify competition in India’s food delivery sector, which is currently dominated by these two players.
The service launch is expected by mid-August, with Flipkart’s commission rate set at 10-11% per order, significantly undercutting existing platforms. This pilot in Bengaluru will be closely watched as a test case for Flipkart’s broader ambitions in the food delivery market, inc42.com noted.