Mumbai: IPO-bound ecommerce company Flipkart is exploring entry into the online food delivery market. The Walmart-owned company is studying the sector and trying to find a unique position before launching services.
According to ET Prime reports, Flipkart may start a pilot programme in Bengaluru between May and June. A full launch could happen by the end of this year or early next year. The company is also building a dedicated team for this project.
Standalone App Or ONDC Model Under Review
Flipkart is studying two possible models. One is launching its own food delivery platform. The second option is launching a buyer app through the government-backed ONDC network.
Flipkart had earlier explored ONDC-based food delivery two years ago but did not move forward at that time. Now, the company is again reviewing the opportunity.
Large And Fast Growing Market Opportunity
India’s food delivery market is estimated at around USD 9 billion in FY25 and could grow to nearly USD 25 billion by FY30, according to brokerage estimates.
The sector is currently dominated by Zomato and Swiggy. New players like Rapido’s Ownly and ONDC-based services are also trying to gain market share.
Quick Commerce Experience Helping Strategy
Flipkart has already entered quick commerce through its Minutes platform. The company currently operates more than 800 dark stores and plans to expand further.
The company has also increased discounting in quick commerce to compete with Blinkit, Zepto and Swiggy Instamart.
Competition And Sector Trends
Food delivery competition is rising with new formats like 10-minute cafe delivery becoming popular. After strong post-Covid growth, the sector saw some slowdown but demand is now improving.
Experts say food delivery is moving from luxury use to daily use, supported by faster delivery and better pricing. User numbers are expected to grow strongly in the coming years.
Flipkart’s entry could increase competition and change pricing and service strategies across the industry.
