Could Flipkart end Swiggy and Zomato's dominance?

India's food delivery market could soon have a powerful new competitor. Flipkart is preparing to enter the sector, taking on established players Swiggy and Zomato with a service that will initially be rolled out on a pilot basis before any nationwide expansion.

Speaking in New Delhi, Flipkart Group CEO Kalyan Krishnamurthy said the company expects to launch the service within days. The scale of the expansion, he added, will depend on customer response during the trial phase.

The service will be available through a dedicated food delivery app as well as the Flipkart shopping app, allowing users to order meals without leaving the company's existing platform. While Flipkart has not disclosed the first launch city, reports suggest it could leverage the government's Open Network for Digital Commerce (ONDC) as part of its strategy.

Krishnamurthy said the company's focus would not be limited to pricing. Flipkart aims to partner with well-known restaurants while offering dependable service and faster deliveries, areas that have become key differentiators in an increasingly competitive market.
The announcement was enough to unsettle investors.

Shares of Swiggy fell as much as 5.5 per cent after the news, while Eternal Ltd., the parent company of Zomato, slipped nearly 3 per cent as markets reacted to the prospect of a new heavyweight entering the business.

For consumers, however, increased competition could work in their favour. A third major player is expected to intensify the battle for market share, potentially leading to sharper pricing, more promotional offers and continued improvements in delivery experience.