The country's quickest delivery service Quick Commerce has been launched in India, along with more competition for food delivery. Flipkart, which was acquired by Walmart, will soon be launching its food delivery service in Bengaluru on or before August 15 and has started signing up restaurants in Bengaluru for the same.

According to media reports, Flipkart has promised a 10% commission to restaurants to make them join its platform. This is much lower compared to 16-30% commission charged by the existing players.

However, with this launch, Flipkart would join the fray where the two big players have dominated for quite some time now. These are Zomato and Swiggy, both of whom have lately witnessed increased competition from Rapido through its newly-launched food delivery brand 'Ownly'.

Nevertheless, Flipkart has chosen an altogether different strategy for food delivery. Instead of going ahead with a closed marketplace, it has chosen the Open Network for Digital Commerce (ONDC) which is being supported by the government for its food delivery service. The company previously stated that it would conduct a pilot run of the service before expanding it nationally.

For existing players, the competitive environment is rapidly intensifying. While Swiggy recently questioned the long-term sustainability of its extremely low commission model, arguing that delivery platforms incur operational costs, Rapido argues that India's food delivery market needs a structural reset, with significantly lower take rates (commissions) for restaurants.

Flipkart's entry adds another well-capitalized challenger to the debate. This could increase pricing pressure, at a time when the sector seemed to have settled into a comfortable duopoly (dominated by two large companies).

The country's quickest delivery service Quick Commerce has been launched in India, along with more competition for food delivery. Flipkart, which was acquired by Walmart, will soon be launching its food delivery service in Bengaluru on or before August 15 and has started signing up restaurants in Bengaluru for the same.

According to media reports, Flipkart has promised a 10% commission to restaurants to make them join its platform. This is much lower compared to 16-30% commission charged by the existing players.

However, with this launch, Flipkart would join the fray where the two big players have dominated for quite some time now. These are Zomato and Swiggy, both of whom have lately witnessed increased competition from Rapido through its newly-launched food delivery brand 'Ownly'.

Nevertheless, Flipkart has chosen an altogether different strategy for food delivery. Instead of going ahead with a closed marketplace, it has chosen the Open Network for Digital Commerce (ONDC) which is being supported by the government for its food delivery service. The company previously stated that it would conduct a pilot run of the service before expanding it nationally.

For existing players, the competitive environment is rapidly intensifying. While Swiggy recently questioned the long-term sustainability of its extremely low commission model, arguing that delivery platforms incur operational costs, Rapido argues that India's food delivery market needs a structural reset, with significantly lower take rates (commissions) for restaurants.

Flipkart's entry adds another well-capitalized challenger to the debate. This could increase pricing pressure, at a time when the sector seemed to have settled into a comfortable duopoly (dominated by two large companies).