India’s online food delivery market could soon become much more competitive.
E-commerce giant Flipkart is reportedly getting ready to launch its food delivery service, with Bengaluru expected to be the first city.
According to media reports, the service may go live around August 15.
The biggest highlight is Flipkart’s plan to charge restaurants only around 10% commission, which is much lower than what many restaurants currently pay on existing food delivery platforms.
Flipkart’s Strategy: Win Restaurants with Lower Commissions
Flipkart’s main focus appears to be attracting as many restaurants as possible by offering lower commission rates.
Many restaurant owners have often complained about paying high commissions to major food delivery platforms.
A lower fee could make Flipkart an attractive option, especially for small and medium-sized restaurants looking to improve their profits.
If more restaurants join the platform, Flipkart could quickly build a strong presence in the food delivery market.
Bengaluru First, More Cities Later
Reports suggest that Flipkart will begin its food delivery service in Bengaluru during the first phase.
The company is expected to study customer response before expanding to other cities.
There are also reports that Flipkart may launch a separate food delivery app instead of adding the service to its existing shopping app. However, the company has not officially confirmed these plans.
Partnership with ONDC Could Boost Competition
According to reports, Flipkart is preparing this service in partnership with the Open Network for Digital Commerce (ONDC).
Working with ONDC could give restaurants more choices and reduce their dependence on a few large platforms.
It may also increase competition in India’s fast-growing food delivery market.
Can Flipkart Challenge Swiggy and Zomato?
Swiggy and Zomato currently dominate India’s online food delivery industry.
But Flipkart already has several advantages.
The company has millions of existing customers, a well-established logistics network, and years of experience in e-commerce.
Combined with its lower commission model, Flipkart could attract both restaurants and customers.
The real test will be whether restaurants join the platform in large numbers and whether customers are willing to switch from their current food delivery apps.
If that happens, India’s food delivery market could be heading for a major change.
