According to multiple restaurant owners involved in the pilot, Flipkart is now in advanced discussions with approximately 300 restaurants in Bengaluru for its food delivery business pilot. The e-commerce major is targeting to go live in the city within one to two months, which would place the pilot launch in September or October. The proposed restaurant network spans both large local establishments and quick-service restaurant chains with a pan-India presence, with offerings planned across different price points. As reported by The Financial Express, the discussions are being held directly by Flipkart without intermediaries, with the company currently negotiating independently with restaurants for the Bengaluru pilot. The company is also looking to have restaurants across different price ranges on the platform.
Unlike an approach through the government-backed Open Network for Digital Commerce (ONDC), Flipkart plans to operate the food business through a standalone app. As reported by The Financial Express, the company decided against launching as a buyer-side application on ONDC, requiring Flipkart to build its restaurant base, technology infrastructure and delivery network independently. The initial proposal was discussed with the National Restaurant Association of India (NRAI), but those talks did not progress beyond the initial stage. However, sources indicate that Flipkart may take those discussions forward before a pan-India expansion. The company is currently negotiating directly with restaurants for the Bengaluru pilot.
The commercial terms under discussion have evolved significantly since Flipkart began approaching restaurants in February. According to The Financial Express, the initial proposal involved a 10-11% commission, a requirement for restaurants to maintain the same prices on Flipkart as in their offline outlets and an offering without discounts. While the commission and price-matching conditions remain, Flipkart is now expected to offer discounts on the platform. The proposed arrangement would divide the cost of discounts according to order value, with discounts in the food delivery industry funded either by the platform or by the merchant. On orders below ₹149-199, the discounts will be funded by the restaurants, while on orders above ₹199-249, the burden will be shared with varying splits by order value. The terms are expected to change depending on the results of the pilot.
According to a person who heads operations at a large Bengaluru restaurant chain part of the pilot, "A large portion of restaurants that are part of the pilot see that demand is higher in the value range. So it'll be important to figure out how discounting works for this pilot to be successful. Our push is for a platform that is fully independent of discounts and advertising fees." The discussions are also on keeping listings and discovery free of advertising fees and paid promotions, with rankings potentially based purely on customer reviews and ratings. This approach would be notable in a market where restaurant advertising has become an important source of revenue for established food delivery companies, with advertising revenue among the fastest-growing and highest-margin income streams for incumbent platforms. However, the proposal has not yet been finalised.
The planned Bengaluru launch comes more than six months after Flipkart's food delivery plans were first reported in February. As reported by The Financial Express, the company is entering a market led by Zomato and Swiggy, which together account for the vast majority of food delivery orders. Jefferies estimates India's food delivery market at around $9 billion and expects it to nearly triple to approximately $25 billion by FY30. Competition has intensified over the past year with Rapido's Ownly entering with a zero-commission promise and flat delivery fee per order, and Swiggy's Toing, a value format that matches dine-in menu prices on lower restaurant take rates. Building an independent marketplace is expected to take longer, as it requires onboarding restaurants, developing technology infrastructure and creating a delivery ecosystem from scratch.
