Walmart’s Flipkart is quietly building a food delivery challenger in India

Restaurants can expect lower commission fees and total selling costs on online orders.

Walmart-owned Flipkart is launching a food delivery service in India, aiming to challenge the established duopoly of Zomato and Swiggy. The company is internally testing the service, branded as "Eat-in by Minutes," with up to 8,000 employees. Flipkart is leveraging its logistics arm, Ekart, for a dedicated rider fleet and is integrating restaurants listed on the government-backed ONDC network as well as those it has signed directly. This move enters a rapidly growing market where online delivery is still a small fraction of the overall food services industry. Previous attempts by Amazon and Google to enter this market have failed, but Flipkart's strategy differs by using its existing e-commerce and quick-commerce operations as a foundation. The company aims for a public launch by the end of October and expansion to several other cities by year-end.

Flipkart's entry into food delivery signals a significant shift in competitive dynamics, potentially disrupting the established duopoly of Zomato and Swiggy by leveraging its existing logistics infrastructure and broad customer base. The proposed lower commission rates, around 10% compared to the typical 20-25%, could force incumbents to reconsider their pricing models and push for greater efficiency and restaurant partnerships. This also presents a viable alternative for restaurants seeking to reduce their reliance on dominant platforms, potentially leading to better margins and more competitive pricing for consumers.

The success of Flipkart's venture will depend on its ability to attract customers away from deeply entrenched incumbents, despite potentially minimal savings per order. Its strategy of using its e-commerce scale and quick-commerce efficiency could offer a leaner operational model, but winning consumer loyalty in a market accustomed to established players and their deep discounts remains a challenge. The coming months will reveal if Flipkart can effectively convert its logistical strengths into a compelling food delivery offering that challenges the market leaders and attracts a significant user base.