Bengaluru’s food delivery market faces disruption as Flipkart targets lower commissions amid restaurant concerns over existing aggregator charges.

The Flipkart food delivery app is expected to enter Bengaluru’s competitive food delivery market as restaurants prepare to halt orders from Swiggy and Zomato over high commissions from August 15. The Walmart-owned e-commerce company is reportedly planning a lower commission model of around 10%, compared with the 24-25% rates commonly charged by existing platforms. The launch timing could position Flipkart as a major challenger while restaurants seek alternatives to improve profitability.

Flipkart Targets Lower-Cost Food Delivery Model

Flipkart’s food delivery service is expected to operate through both a standalone application and the main Flipkart app. The company is likely to use the Government-backed Open Network for Digital Commerce (ONDC), allowing it to connect with existing seller networks without building a marketplace from the ground up.

Key factors shaping Flipkart’s entry include:

  • Lower commission rates to attract restaurant partners

  • ONDC network access reducing marketplace development costs

  • Existing logistics strength supporting delivery operations

  • Strong capital backing enabling competitive pricing strategies

  • Bengaluru launch timed with restaurant platform tensions

The Bengaluru restaurant community has raised concerns over high platform charges, discounting practices and reduced profit margins. The Bangalore Hotels Association (BHA) stated that nearly 20,000 restaurants in the city are listed on online food delivery platforms and could participate in the proposed boycott if discussions fail.

New Competition Emerges in Food Delivery Sector

The Swiggy and Zomato competition is facing fresh pressure from new entrants targeting restaurants frustrated with commission-based models. Rapido-backed Ownly has already gained attention with its zero-commission approach, claiming expansion across thousands of restaurants in Bengaluru.

Flipkart’s entry could further reshape the Indian food delivery market by offering restaurants another option while competing for customers seeking affordable ordering platforms. The company’s existing user base, technology infrastructure and delivery capabilities may help it scale faster than traditional new players.

Industry observers believe the rise of ONDC-based platforms could reduce dependence on dominant food delivery aggregators. ONDC seeks to establish a more open digital commerce ecosystem by allowing several buyer and seller applications to function on a shared network.

While promoting communication between platforms and companies, the National Restaurant Association of India (NRAI) has backed restaurant concerns over commissions and pricing. Restaurants still contend that delivery platform fees have an effect on menu prices and patron satisfaction.

Business Fortune is of the view that Flipkart’s entry could intensify food delivery competition while encouraging fairer commission structures and greater restaurant profitability.

 

FAQs

Why are Bengaluru restaurants planning to stop accepting orders from Swiggy and Zomato?

Bengaluru restaurants are planning a boycott of Swiggy and Zomato over concerns about high commission rates, which are reportedly around 24% to 25% per order. Restaurants are seeking lower-cost alternatives to improve profitability.

When is Flipkart expected to launch its food delivery app?

Flipkart is reportedly planning to pilot its food delivery service in Bengaluru on August 15, the same day restaurants are expected to begin their boycott of Swiggy and Zomato.

How will Flipkart’s food delivery commission rates compare with Swiggy and Zomato?

Flipkart is expected to offer a lower commission model of around 10%, significantly below the 24% to 25% rates commonly charged by existing food delivery platforms.

How will ONDC help Flipkart enter the food delivery market?

Flipkart’s integration with the Government-backed Open Network for Digital Commerce (ONDC) could give it access to restaurant inventories already available on the network. This allows Flipkart to scale faster without building a marketplace entirely from scratch.

Can Flipkart challenge the dominance of Swiggy and Zomato in food delivery?

Flipkart could become a strong competitor due to its lower commission rates, existing logistics infrastructure, large customer base and financial backing from Walmart. However, gaining significant market share will depend on customer adoption and restaurant participation.