According to reports from Business Standard, Flipkart is reportedly gearing up to launch a food delivery business, marking a significant strategic shift in India's consumer internet sector. This move reflects a broader industry trend where companies are expanding beyond core businesses to become comprehensive platforms for multiple everyday consumer needs. As Naveen Malpani, partner at Grant Thornton Bharat, explained to Business Standard, platforms are now trying to become consumers' preferred destination for multiple everyday needs by combining shopping, groceries, dining, payments and financial services within the same ecosystem. Flipkart Group CEO Kalyan Krishnamurthy confirmed the company's plans during Walmart's recent earnings call, stating that food delivery will be introduced as another service within Flipkart's growing consumer ecosystem.
According to Malpani's analysis reported by Business Standard, food delivery holds unique value because of its high frequency of use among consumers. While purchases such as smartphones, televisions or fashion typically occur only a few times a year, ordering meals has become a weekly and often daily habit for millions of urban consumers. This frequency provides platforms with repeated opportunities to engage customers, collect behavioral insights and cross-sell other services. As reported by Grant Thornton Bharat's consumer survey, around 45% of quick commerce purchases are driven by emergency requirements and daily top-up shopping, with more than 70% of consumers saying they would continue using these services even if discounts were reduced.
The food delivery service is expected to debut in Bengaluru before expanding to other cities, with a pilot rollout planned before full-scale launch. According to reports, Flipkart's food delivery service will leverage the Open Network for Digital Commerce (ONDC), enabling restaurants to receive orders through the government-backed open commerce network. By integrating with ONDC, the company is expected to offer restaurants lower commission costs than traditional food delivery platforms while providing customers with a wider selection of merchants. The offering is expected to be integrated into the main Flipkart app, although reports suggest the company has also been testing a standalone food delivery application internally.
This expansion intensifies competition in India's food delivery market, which is estimated to be worth over $8 billion and continues to expand driven by rising digital adoption, urbanisation, and increasing demand for convenience. Flipkart already operates one of India's largest e-commerce and logistics networks and is expected to utilise this infrastructure to support its food delivery operations. While Zomato and Swiggy continue to dominate the market, newer entrants are experimenting with alternative business models, with Rapido recently launching its zero-commission food delivery platform Ownly, and Swiggy introducing Toing, a value-focused offering aimed at price-conscious consumers.
