Flipkart To Launch Food Delivery Service By Mid-August With 10-11% Commission Model

Flipkart prepares to launch its food delivery service in Bengaluru by mid-August, signaling its formal entry into India's competitive online food delivery market. Sources report the ecommerce giant intends to charge restaurants a commission of 10-11% per order, a stark contrast to the 25% to 35% typically charged by established platforms Swiggy and Zomato.

The lower commission is part of Flipkart's strategy to attract restaurant partners from the incumbents. For perspective, Flipkart's strategy mirrors Rapido's zero-commission model, which debuted in Bengaluru. The service is set to be a pilot launch, evaluated for integration into the main Flipkart app, a standalone app, or both.

Utilizing the Open Network for Digital Commerce (ONDC), Flipkart plans to onboard restaurants. The move comes as restaurant owners in Bengaluru have been vocal about dissatisfaction with Swiggy's commission structures and advertising costs. With over 500 million registered users, Flipkart sees the food delivery service as a way to boost engagement across its ecosystem.

However, drawing consumers away from existing habits and achieving sufficient order density will be significant hurdles.