Flipkart IPO Plans Drive Food Delivery Entry Talks, Zomato & Swiggy Shares Fall As Competition Fears Rise

Mumbai: Shares of delivery technology companies Eternal (parent company of Zomato) and Swiggy fell up to 3 percent on February 12. The fall came after reports said IPO-bound Flipkart is exploring entry into India’s online food delivery market. Investors fear that a new large player could increase competition in the sector. Flipkart Evaluating Food Delivery Launch Flipkart is studying the food delivery business and may start a pilot programme in Bengaluru around May to June. A larger national launch could happen by late 2026 or early 2027. According to Economic Times sources, Flipkart is looking at how it can create a different business model to stand out in the competitive market. Standalone Platform Or ONDC Option Being Studied Flipkart is studying two main options. One is launching its own food delivery app. The second is launching a buyer app through the government-backed ONDC network. Flipkart had earlier explored ONDC food delivery plans two years ago but did not move forward at that time. Large And Growing Market Opportunity India’s food delivery market is valued at around $9 billion in FY25 and is expected to grow to nearly $25 billion by FY30. Currently, Zomato and Swiggy dominate the market. However, new players like Rapido’s Ownly are also trying to grow in this space. Quick Commerce Network Could Support Expansion Flipkart is already expanding its quick commerce platform Minutes. The company operates more than 800 dark stores and plans further expansion. This strong delivery network could help Flipkart if it enters food delivery, especially in big cities where fast delivery is important. Sector Trends Changing Fast Food delivery is slowly becoming an everyday service instead of a luxury. Faster delivery and better pricing are increasing customer demand. If Flipkart enters the market, it could change pricing, competition and customer offers across the industry.