Flipkart to pilot food delivery in Bengaluru with 300 restaurants

Flipkart is planning to launch a food delivery pilot in Bengaluru with around 300 restaurants, according to multiple sources. The e-commerce company is negotiating with restaurants for a standalone app launch, expected in September or October, news.abplive.com reports, citing The Financial Express. The initial pilot will use Flipkart Minutes for order fulfilment, with a separate app planned later, inc42.com adds. Flipkart's entry comes amid a standoff between restaurants and the Swiggy-Zomato duopoly over high commissions and advertising costs.

Flipkart is offering a base commission of 12-13%, significantly lower than the 15-40% charged by incumbents, inc42.com reports, citing industry sources. The company is also considering capping marketing spends for restaurants, addressing a key demand from restaurant bodies. news.abplive.com notes that Flipkart's initial proposal included a 10-11% commission and no discounts, but has evolved to include cost-sharing on discounts. The proposed network spans large local outlets and quick-service chains across price ranges. Flipkart held early talks with the National Restaurant Association of India (NRAI), but they did not progress.