Flipkart to Enter Food Delivery Market, Challenging Zomato and Swiggy

Indian e-commerce giant Flipkart is gearing up to enter the food delivery market, aiming to compete with established players like Zomato and Swiggy Instamart. The company is expected to roll out its food delivery service in a pilot phase in Bengaluru within the coming weeks.

Flipkart's entry is anticipated to intensify competition in the food delivery sector, which has seen new entrants like Rapido with its Ownly service. For Flipkart, food delivery offers a strategic avenue to embed itself deeper into consumers' daily lives, extending beyond its core e-commerce operations. The company's significant advantage lies in its vast user base, boasting 500 million registered users.

Unlike some recent entrants, Flipkart is reportedly not planning to operate its own cloud kitchens. Instead, it will adopt a marketplace model, connecting customers with existing restaurants, similar to Zomato and Swiggy. This approach aims to mitigate operational complexities and provide a wider selection of dining options from the outset. Flipkart is also expected to leverage the ONDC network for onboarding restaurant partners.

The pricing strategy for Flipkart's food delivery service and its commission rates for restaurants remain undisclosed. However, the company recently removed commission fees for all fashion products, benefiting approximately 90,000 sellers. Backed by Walmart, Flipkart possesses the financial resources for aggressive market expansion.

In recent years, Flipkart has expanded its offerings across various consumer needs, including groceries via Flipkart Minutes, fashion through Myntra, and travel bookings via Cleartrip. The addition of food delivery aligns with its broader strategy to build a cohesive ecosystem where customers can manage a growing range of daily necessities within Flipkart's service network.