Flipkart is set to enter the food delivery market with a launch in Bengaluru later this month, aiming to challenge established players Zomato and Swiggy. The ecommerce giant plans to expand the service to other cities within the year. Initially, orders and fulfillment will be managed through Flipkart Minutes, with a standalone app under development. Flipkart’s large user base of roughly 500 million registered users and 40 million SuperCoins users provides a strong foundation for cross-selling food orders, according to inc42.com.
To keep operational costs low during the rollout, Flipkart will leverage its existing infrastructure instead of building a new network. The service will use Ekart’s logistics network for deliveries and integrate with ONDC for restaurant onboarding. The SuperCoins loyalty program will offer discounts to customers without impacting platform margins. Flipkart is focusing on improving merchant economics by proposing a base commission rate of 12%-13%, significantly lower than the 30% charged by competitors, and plans to cap marketing and advertising expenses, addressing key concerns raised by restaurants, inc42.com reports.
Flipkart’s entry into food delivery marks a notable shift in the sector, which has long been dominated by Zomato and Swiggy. The lower commission model and use of existing logistics infrastructure could pressure rivals to reconsider their pricing and operational strategies. The move also highlights growing competition in India’s foodtech space, where profitability and merchant relations have been contentious issues. Flipkart’s large ecommerce ecosystem and loyalty program integration offer a distinct approach compared to existing players, according to inc42.com.
Flipkart’s food delivery launch in Bengaluru is scheduled for later this month, with plans to expand to additional cities throughout the year. The company’s strategy includes leveraging Ekart logistics and ONDC integration while maintaining competitive commission rates to attract restaurants and customers, inc42.com confirms.