Fresh competitive concerns hit delivery tech stocks on February 12 after reports said Flipkart is exploring a foray into India’s online food delivery market.
Shares of Eternal, the parent of Zomato, fell 1.6% to ₹295.9, while Swiggy declined 3% to ₹331.75 at 10:25 am.
According to a report, IPO-bound Flipkart is evaluating a pilot launch in Bengaluru around May–June, with a wider rollout possible by late 2026 or early 2027. The move would place the Walmart-owned ecommerce major in direct competition with Zomato and Swiggy in a market valued at $9 billion in FY25 and projected to reach $25 billion by FY30, as per Jefferies.
“Flipkart is evaluating the food delivery market while trying to identify a differentiated positioning in the space,” one person familiar with the matter said.
Another person told a media platform that Flipkart is considering whether to build a standalone app or launch a buyer-facing application on the government-backed Open Network for Digital Commerce (ONDC). Both options are under review, and the company has started building a team for the initiative.
Flipkart had earlier explored entering food delivery via ONDC about 2 years ago, alongside companies such as Ola and Paytm, but the plan did not move ahead.
The renewed interest comes as the segment shifts from discretionary use to everyday consumption, supported by better affordability, faster deliveries and improved reliability, according to Jefferies.
India’s food delivery market has consolidated sharply, with Zomato and Swiggy dominating after smaller players exited. Globally, most large markets outside India and China have stabilised with 3-4 operators, often led by one dominant company.
After several quarters of growth at the lower end of 18-22% guidance, both Zomato and Swiggy reported improved demand in the October–December quarter. Gross order value rose 21.3% year-on-year for Zomato and 20.5% for Swiggy.
New formats such as 10-minute café-style delivery are also emerging, even as overall consumption trends remain mixed.
Meanwhile, Rapido has expanded its Ownly food delivery platform in Bengaluru and plans to enter Pune, Mumbai and Delhi-NCR. The platform focuses on addressing restaurant concerns over commissions and transparency.
Flipkart’s assessment aligns with rapid growth in its quick commerce arm, Minutes, which operates over 800 dark stores. This infrastructure could offer logistical advantages if the company enters food delivery, especially in dense urban markets.
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