Flipkart Enters India’s Food Delivery Market: ONDC Model, 10% Restaurant Commission, Bengaluru Launch Soon

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).