New Delhi: Flipkart is about to enter the competitive Indian market of online food delivery. The e-commerce giant Walmart will probably initiate a pilot project in Bengaluru in May-June in another attempt to diversify past the old ways of e-commerce and quick commerce.
If the pilot performs well, there might be a greater rollout as late as 2026 or early in the next year. The relocation is an indication of Flipkart focusing on solidifying its consumer services line-up when rivalry on digital platforms rises and development perspectives are migrating to high-frequency classes like food.
Market opportunity and competitive landscape
The online food delivery market in India is already estimated as approximately $9 billion, and it is estimated to reach about $25 billion by FY30, as per the broking estimates. Zomato and Swiggy are the main dominating forces in the space, and they control the market in most cases.
Newer models are also becoming popular. Ride-hailing service Rapido has launched its platform called Ownly in Bengaluru, with a number of smaller players utilising the Open Network Digital Commerce (ONDC) supported by the government to target niche demand.
The industry data indicates stable demand, although the overall growth is moderating. Zomato indicated more than 21 per cent growth in gross order value in the October-December quarter, which is against 20 per cent by Swiggy.
Standalone app or ONDC integration?
There are two possible entries that Flipkart is considering. Launching an independent food delivery application is one of the options. The other is to develop a buyer-side service incorporated with ONDC. The company had also ventured into the ONDC route almost two years ago, yet such consultations never went anywhere at that time.
The sources reveal that both of the strategies are still under consideration. The company is already said to have started recruiting on the programme, which indicates that preparations towards the pilot are being made.
Quick commerce push and IPO plans
The food delivery push is in line with Flipkart extending into quick commerce. Its Minutes service presently is running an excess of 800 dark stores and is poised to increase to greater levels within the next few months.
Timing is another major factor since Flipkart is about to go public. Diversification into high-frequency products like food delivery might enhance its growth narration and enhance the attractiveness of investors.
The food delivery industry in India has experienced a number of entries and exits. In 2020, Uber Eats was acquired by Zomato. Ola closed down the Foodpanda and Ola Dash operations. Amazon also tried the category and then scaled back.
The renewed interest of Flipkart is an indicator that the company feels there is still space to innovate in the market, despite the established players still creating a stronger foothold.