Business

Flipkart to launch food delivery in Bengaluru, targeting restaurants with lower commissions

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Flipkart, the e‑commerce arm of Walmart, is set to enter India’s food‑delivery arena. The company announced plans to launch its service in Bengaluru as early as August 15. It has already started signing up local restaurants for the pilot.

Flipkart will charge a commission of about 10 percent, a sharp drop from the 16‑30 percent range that most existing platforms take. The lower fee is meant to lure restaurant partners who are tired of high take‑rates. It is not a zero‑commission model, but it is a step toward cheaper delivery for merchants.

Unlike the closed marketplaces of Swiggy and Zomato, Flipkart is building its delivery network on the government‑backed Open Network for Digital Commerce (ONDC). This open framework lets the company connect with many sellers without creating a separate app from scratch.

The first launch will be limited to Bengaluru, where the company will test the service with a small group of users. After gathering feedback, Flipkart plans to refine the offering before scaling it to other cities.

Ashish Vijayvergiya, who has served as chief of staff to Flipkart’s CEO, will lead the food‑delivery initiative. The company has not yet issued a public statement on the project, but insiders confirm that the team is moving fast.

The entry comes at a time when the market is already crowded. Swiggy has warned that ultra‑low commissions may not be sustainable, while Rapido’s Ownly has gained a 7‑10 percent share in Bengaluru by offering zero commissions.

Customers will be able to order through the main Flipkart app and, in the future, through a dedicated food‑delivery app. The dual‑app approach mirrors the strategy used for Flipkart Minutes.

With another well‑capitalised player in the mix, pricing pressure could intensify. The debate over lower take‑rates is likely to continue as the sector shifts from a duopoly to a more competitive landscape.

Flipkart’s move signals its intent to diversify the ecosystem and provide an alternative for restaurants looking for lower costs. The pilot launch in Bengaluru will be closely watched by industry observers.