India's food delivery industry could be on the verge of its biggest shake-up in years. E-commerce giant Flipkart, backed by Walmart, is preparing to enter the online food delivery market with a pilot launch in Bengaluru around mid-August 2026. But unlike existing players, Flipkart is betting on a significantly lower commission model, a move that could reshape the economics of food delivery for restaurants across the country.
According to people familiar with the development, Flipkart has proposed charging restaurants 9% commission along with a 2% handling fee, taking the total platform charge to approximately 11%. While the pricing is yet to be finalized, it is substantially lower than the 25-30% commission typically charged by market leaders Swiggy and Zomato.
The timing of Flipkart's entry is particularly significant, coming at a time when restaurant owners are increasingly voicing concerns over high commissions, mandatory discount participation, advertising costs, and shrinking profit margins.
A New Battle Begins in India's Food Delivery Market
India's online food delivery space has largely been dominated by Swiggy and Zomato for several years. However, the market has recently started witnessing fresh competition.
Rapido introduced its Ownly platform with a zero-commission approach, while the government's Open Network for Digital Commerce (ONDC) is encouraging a more open and competitive digital commerce ecosystem. Now, Flipkart is positioning itself as another major challenger with a business model focused on affordability for restaurants.
Industry experts believe this could mark the beginning of a new era where platforms compete not only for customers but also for restaurant partners.
Why Bengaluru?
Flipkart has chosen Bengaluru for its pilot because the city remains India's largest and most competitive online food delivery market. It also serves as a testing ground for several food-tech innovations before nationwide rollouts.
The pilot will allow the company to study customer behavior, restaurant participation, delivery efficiency, and operational costs before expanding to other cities.
Lower Commissions Could Be a Game Changer
One of the biggest highlights of Flipkart's strategy is its proposed commission structure.
Under the current proposal:
Restaurant Commission: 9%
Handling Charge: 2%
Total Charges: Approximately 11%
Although these figures are still under discussion, they represent a significant reduction compared to the commission rates charged by existing food delivery platforms.
For restaurant owners, lower commissions could translate into:
Higher profit margins
Reduced dependence on expensive marketplaces
Better pricing flexibility
Lower customer acquisition costs
Improved long-term sustainability
Restaurant Frustration Creates an Opportunity
Flipkart's entry comes at a time when restaurant associations across India, particularly in Bengaluru, have openly criticized existing food delivery platforms over rising commissions and platform charges.
Several restaurant owners have argued that after paying commissions, discounts, advertising expenses, packaging costs, and delivery-related fees, their profit margins have become increasingly unsustainable.
Industry bodies have also warned of possible action against existing food delivery platforms if fee structures are not reviewed.
This growing dissatisfaction has created a unique opportunity for new entrants offering more restaurant-friendly business models.
Partnership with ONDC
According to reports, Flipkart's initial rollout is expected to begin in partnership with ONDC (Open Network for Digital Commerce).
ONDC is a Government of India initiative designed to reduce the dominance of a few large marketplaces by creating an open digital network where buyers and sellers can transact across multiple platforms.
By leveraging ONDC during its pilot phase, Flipkart may be able to onboard restaurants faster while reducing infrastructure costs.
Will Flipkart Launch a Separate Food App?
Sources indicate that Flipkart is currently evaluating two different approaches.
The company may either integrate food ordering directly into the existing Flipkart app or launch a dedicated food delivery application.
Both models are expected to be tested during the Bengaluru pilot before a final decision is made for future expansion.
Fast Delivery and Standard Delivery Under Testing
Flipkart also plans to experiment with two delivery formats.
The first will focus on faster delivery for lower-priced meals and quick food orders, targeting customers looking for convenience and speed.
The second will follow the traditional restaurant delivery model for regular food orders.
By testing both formats simultaneously, Flipkart hopes to identify the most efficient and profitable delivery strategy before scaling operations.
Why Food Delivery Matters for Flipkart
Unlike electronics or fashion, food delivery is a high-frequency business.
Consumers may shop online for products only a few times each month, but many order food several times every week.
Entering this category allows Flipkart to:
Increase daily customer engagement
Improve app usage frequency
Cross-sell products across categories
Strengthen customer loyalty
Expand its digital ecosystem
For Flipkart, food delivery represents more than a new business vertical—it is an opportunity to become a part of customers' everyday lives.
What This Means for Consumers
If Flipkart successfully launches with lower commissions, customers could also benefit.
Greater competition in the market may lead to:
More attractive discounts
Lower delivery charges
Better restaurant availability
Improved customer service
Faster innovation across platforms
Competition has historically benefited consumers, and analysts believe another major player could force the entire industry to rethink pricing strategies.
Challenges Ahead
Despite its strengths, Flipkart faces several hurdles before becoming a serious competitor.
The company will need to:
Build a reliable delivery network
Convince restaurants to join the platform
Compete against Swiggy and Zomato's established customer base
Ensure fast delivery performance
Achieve sustainable unit economics
Food delivery is known for its thin margins, making operational efficiency critical for long-term success.
The Bigger Picture
Flipkart's planned entry reflects a broader shift taking place in India's food delivery ecosystem.
For years, the industry has been largely controlled by two dominant players. However, the emergence of ONDC, Rapido's commission-free model, and now Flipkart's low-commission strategy signals that the market is becoming more competitive.
If successful, Flipkart's entry could encourage more balanced pricing, healthier competition, and better opportunities for both restaurants and consumers.
The Bengaluru pilot will therefore be closely watched by restaurant owners, investors, food-tech startups, and industry experts alike. While the launch is initially limited to one city, its outcome could shape the future of India's rapidly evolving online food delivery industry.