Walmart’s Flipkart is quietly building a food delivery challenger in India

Flipkart’s entry into India’s food-delivery market directly challenges the established duopoly of Zomato and Swiggy. This move is notable because previous attempts by global tech giants like Amazon and Google to break into this competitive sector have not succeeded. Flipkart is leveraging its existing e-commerce and quick-commerce infrastructure, an approach that differs from the incumbent food-delivery platforms that expanded from meal delivery into quick commerce. This reverse strategy could offer operational efficiencies.

The competitive landscape is already showing signs of pressure on existing pricing models. Flipkart has reportedly proposed a base commission of about 10% to restaurants, significantly lower than the 20% to 25% typically charged by Zomato and Swiggy. This aligns with the National Restaurant Association of India's call for alternatives and could drive down costs for restaurants, potentially reshaping industry economics.

The food-delivery market in India, estimated by Bernstein to be growing 18% to 20% annually, still has considerable room for expansion, with online delivery accounting for just over 15% of the broader food-services industry. While Zomato and Swiggy dominate with 85 million to 95 million annual paying customers, the sheer scale of India's internet user base suggests significant untapped potential for new entrants like Flipkart, provided they can overcome the challenges that have thwarted previous competitors.