A new report from Moneycontrol has now revealed that Walmart-owned Flipkart is preparing to enter India’s online food delivery business. Via this report, its expected launch timeline, rollout strategy, and availability through different applications have also been shared.
Learn more about it below.
Flipkart to Enter India’s Online Food Delivery Business
As per the details shared in the Moneycontrol report, Flipkart Group CEO Kalyan Krishnamurthy has confirmed that the company will be launching its food delivery service within the next few weeks. With this, Swiggy and Eternal-owned Zomato could soon be getting a new competitor in India’s online food delivery market.
Krishnamurthy pointed out that Flipkart will initially launch the service on a limited scale, test its value proposition among customers, collect feedback, and continue improving the product. After the company believes that the service offers the desired customer experience, it will gradually be expanded across India.
While certain earlier reports had suggested Bengaluru to be the possible pilot city, the Flipkart Group CEO did not reveal the city in which the food delivery service will initially be introduced. The official branding of the upcoming service also remains under wraps.
Speaking about its availability, the food delivery service will be offered through a separate application as well as within the existing Flipkart app. This will give users the choice of placing their food orders using either of the two platforms.
Looking into Flipkart’s existing delivery infrastructure, the company already operates its Flipkart Minutes quick-commerce service, which delivers groceries and other daily essentials within minutes. Therefore, Flipkart already has an established logistics network and wider customer base, which could probably help the company scale its upcoming food delivery service.
The report further points out that Flipkart is expected to roll out the service through an integration with the government-backed Open Network for Digital Commerce (ONDC). However, the exact structure of this integration or the operating model which Flipkart will be following has not yet been revealed.
What Does This Mean for Customers?
Whenever a new player enters a competitive market, promotional discounts and other introductory offers are generally made available to attract customers. We previously witnessed a similar strategy when Zepto expanded its quick-commerce service by providing promotional cash and discount offers.
Therefore, Flipkart’s entry into the food delivery segment could probably bring more promotional offers, competitive pricing, improved services, and wider restaurant choices for customers. Krishnamurthy has also pointed out that the company’s value proposition will focus not only on pricing, but also on selection, service, reliability, and the overall customer experience.
As the food delivery service will be introduced through a phased rollout, it may take some time before it becomes available across India. Probably, more details regarding its branding, initial launch cities, restaurant catalogue, and promotional offers could soon be revealed. Stay tuned for more updates!
