E-commerce platform Flipkart is mulling entering into the online food delivery space, the Economic Times reported, citing sources as saying. The online marketplace had entered the fast-growing 10-minute grocery delivery space in late 2024.
While the full-scale launch will happen by the end of this year or in the beginning of next year, the Walmart-owned company is targeting a pilot programme in Bengaluru around May-June, the report added.
Flipkart's evaluation of the food delivery market will take place alongside identification of a "differentiated position in the space", ET quoted sources as saying.
In an attempt to walk the same path as Ola and Paytm, Flipkart laid down blueprints to enter food delivery through the government-backed Open Network for Digital Commerce two years back. However, the proposal did not progress beyond the drawing board.
Brokerage firm Jefferies estimates India's food delivery market to expand to $25 billion by FY30, from the $9 billion estimated in fiscal 2025. The segment is currently dominated by Eternal-owned Zomato and Swiggy, with Rapido's Ownly and smaller ONDC-based players attempting to capture share.
Sources told ET that Flipkart is actively weighing its options between launching a standalone platform or rolling out a buyer-side application on the ONDC. The company has already begun building out a team for the initiative.
Flipkart's decision comes at a time when competition in food delivery is intensifying. Even as overall growth is moderate, 10-minute cafe-style delivery formats are emerging consistently.
After being at the lower end of the guided 18-22% medium-term growth range for several quarters, food delivery leaders Zomato and Swiggy signalled improved demand in the October-December quarter. Gross order value in the quarter rose 21.3% from a year earlier for Zomato and 20.5% for Swiggy.
