Flipkart Eyes Food Delivery Entry, Plans Bengaluru Pilot

E-commerce major Flipkart is weighing an entry into online food delivery and plans to run a pilot in Bengaluru around May–June. A wider launch could follow by the end of 2026 or early 2027.

The Walmart-owned company has begun building a team for the initiative, as per reports. It is evaluating whether to launch a standalone platform or roll out a buyer-side application on the government-backed Open Network for Digital Commerce (ONDC). Flipkart did not immediately announce the plan publicly. The discussions are at an exploratory stage.

Evaluating A Differentiated Play

Flipkart’s review of the food delivery segment will run alongside efforts to identify what one source described as a ‘differentiated position’ in the market. The company had earlier drawn up plans to enter food delivery through ONDC about two years ago. That proposal did not move ahead.

The fresh evaluation comes after Flipkart entered the 10-minute grocery delivery segment in late 2024. Its quick commerce arm, Minutes, has scaled to over 800 dark stores and is expanding further. Food delivery could add another in-demand category to its portfolio. It could also place Flipkart directly against established players.

$9 Billion Market, Growth Back In Focus

Brokerage firm Jefferies estimates India’s food delivery market at about $9 billion in FY25. It expects the segment to expand to roughly $24 billion by FY30. The market is currently dominated by Zomato, owned by Eternal, and Swiggy.

Smaller players, including ONDC-based platforms and Rapido’s Ownly, are attempting to gain share. Growth in the segment had slowed in recent quarters and trended toward the lower end of the 18–22% medium-term guidance given by listed food delivery companies.

Rising Competition, New Formats

Over the years, competition in food delivery has intensified. While the core restaurant delivery business remains concentrated, newer sub-segments are expanding. These include:

• Swiggy’s Bolt and Snacc

• Blinkit’s Bistro

• Zepto Cafe

• Standalone players such as Swish

Ten-minute cafe-style formats have gained traction. Companies are using dark stores and dense delivery networks to serve ready-to-eat items and beverages quickly.

Past Attempts, Market Exits

The food delivery sector has also seen exits. Uber Eats shut down operations in India in 2020. Ola made multiple attempts, including Ola Cafes, the acquisition of Foodpanda, and Ola Dash’s 10-minute delivery service.

Those initiatives were eventually discontinued. Industry observers have often described the segment as a near-duopoly. Flipkart’s possible entry would test whether that structure can shift.

This development comes as Flipkart prepares for a potential public listing. Expanding into food delivery could strengthen its positioning as a broader consumer internet platform. However, the company has not publicly linked the move to its IPO plans.

What It Means For The Sector And Investors?

For the sector, Flipkart's entry could increase competition in pricing, commissions, and delivery speed.

For investors, it may signal that growth in food delivery remains attractive enough to draw fresh capital and established platforms.

Sources:

NDTV Profit

Outlook Business

Business Standard