Flipkart Enters Food Delivery at 10-11% Commission

Flipkart is preparing to launch a food delivery service in Bengaluru by mid-August, entering a market dominated by Swiggy and Eternal-owned Zomato with a commission rate of 10-11% per order, well below the 25-35% that the two incumbents typically charge restaurants.

The Walmart-owned ecommerce company has already begun onboarding restaurants across Bengaluru ahead of the pilot. Whether the service runs through the main Flipkart app, a standalone application, or both is still being evaluated. Flipkart will use the Open Network for Digital Commerce (ONDC) to bring restaurant partners onto the platform, which allows a marketplace-style setup without building a proprietary restaurant network from scratch.

A Commission Gap That Opens a Door

The pricing strategy is the core of Flipkart's play. At 10-11%, a restaurant would keep a far larger share of each order compared to what it currently pays Swiggy or Zomato. The gap is not marginal: at the lower end, Flipkart's rate is roughly one-third of what incumbents charge. This gives restaurant owners a direct financial incentive to list on the new platform, especially as discontent with existing platforms is already high.

That discontent has been building visibly in Bengaluru. Restaurant associations there have set an August 15 deadline for Swiggy to respond to concerns about commissions and related charges. Rapido has moved into the same space through its Ownly platform, offering a zero-commission model as an alternative. Flipkart is entering at a moment when restaurants are actively looking for better terms, which lowers the difficulty of the supply-side problem.

The harder challenge is the demand side. Swiggy and Zomato have spent years building delivery logistics, loyalty programmes, and customer habits across Indian cities. Switching costs for consumers are low in theory but sticky in practice. Flipkart will need to reach enough order density in Bengaluru before the economics work at a low commission rate, and that requires drawing in users who already have established preferences on rival apps.

Why Flipkart Needs High-Frequency Services

Food delivery fits a specific strategic need for Flipkart. Ecommerce orders are typically infrequent, while food delivery drives daily or near-daily app opens. After launching Flipkart Minutes, its quick commerce service, in 2024, the company is now expanding into another category designed to keep users inside its ecosystem more often. With over 500 million registered users, Flipkart has the base to work with. Converting even a fraction of that base into regular food delivery users would meaningfully improve engagement and monetisation across the wider platform.

Flipkart is expected to take an asset-light approach, acting as a marketplace that connects consumers with existing restaurants rather than owning delivery infrastructure outright. This limits upfront capital requirements but also limits control over delivery speed and quality, two areas where Swiggy and Zomato have deep operational experience.

The launch also arrives as Flipkart's IPO timeline remains uncertain. The company was expected to list by late 2025 or early 2026, but those plans have not progressed. A reported $2 billion to $2.5 billion pre-IPO funding round was being explored but has not moved forward. Demonstrating growth in high-frequency consumer services could support the case for a stronger valuation when and if Flipkart does return to listing plans.

For now, Bengaluru serves as the testing ground. The city is also where restaurant pressure on Swiggy is most organised, making it a logical place to recruit partners quickly. How Flipkart resolves the app strategy question, and whether it can convert restaurant supply into real consumer traction, will determine whether this pilot expands or stalls.