Flipkart to launch food delivery service in coming weeks
What's the story
Walmart-owned e-commerce giant Flipkart is gearing up to enter India's online food delivery space. The company will be taking on established players like Zomato and Swiggy. Flipkart Group CEO Kalyan Krishnamurthy confirmed the development to Moneycontrol, saying that the new service will be launched within weeks However, it will start small with a limited user base before expanding nationwide based on customer feedback.
Gradual launch
Testing value proposition with customers
Krishnamurthy said the company will first test its value proposition with customers, get their feedback, and refine the offering.
This phased approach is similar to what Flipkart did with its quick commerce business, Flipkart Minutes.
The new food delivery service will be available through a separate app as well as within the main Flipkart app.
However, details about the name of this service and its first city of operation are still under wraps.
Service structure
Integration with ONDC expected
While there are no official comments from Flipkart on how its food delivery service will be structured, reports suggest that the company plans to launch it by integrating with the government's Open Network for Digital Commerce (ONDC).
Krishnamurthy said that Flipkart only enters a business when it can offer something new.
He added that value isn't just about lower prices but also includes a wide choice of restaurants, reliable service, fast deliveries, and a seamless experience.
Market strategy
Building a comprehensive restaurant catalog
Krishnamurthy further said that Flipkart wants customers to discover a wide range of restaurants on its platform over time.
He noted that if food delivery becomes part of the main app, customers would expect to see most of the restaurants already available through other platforms.
The company will work toward building a comprehensive restaurant catalog as it expands this business.
Market impact
India's food delivery market gets more competitive
Flipkart's entry is set to make India's food delivery market even more competitive.
The sector is currently dominated by Eternal-owned Zomato and Swiggy, while ONDC-backed food ordering has also been gaining traction with its alternative network-based model.
With its massive user base, robust logistics network, and growing quick commerce business, Flipkart hopes to carve out a niche in this space where convenience, speed, and customer experience are key decision-making factors.