Flipkart on ONDC? How you can order food on ONDC through Flipkart.

Is Flipkart on ONDC?

As the Indian e-commerce market continues to develop, top players are increasingly looking for ways to diversify their service offerings and meet changing consumer demands.

Flipkart is entering the food delivery market by teaming up with ONDC. This move will broaden Flipkart's services, boost competition in food delivery, and meet the growing demand for food services while helping local businesses.

In 2022, Flipkart ventured into the hyper-local delivery market with its Flipkart Quick service, which promised grocery deliveries within 90 minutes. Despite its ambitious launch, the service faced operational challenges, leading to a reduction in its geographical reach to just two cities—Bengaluru and Delhi. This setback revealed the challenges of managing quick delivery logistics in busy urban areas. However, Flipkart's commitment to diversifying its service portfolio remains strong, and the new partnership with ONDC shows a renewed effort to expand into the food and beverage sector.

As the Indian e-commerce market continues to develop, top players are increasingly looking for ways to diversify their service offerings and meet changing consumer demands.

Flipkart is entering the food delivery market by teaming up with ONDC. This move will broaden Flipkart's services, boost competition in food delivery, and meet the growing demand for food services while helping local businesses.

In 2022, Flipkart ventured into the hyper-local delivery market with its Flipkart Quick service, which promised grocery deliveries within 90 minutes. Despite its ambitious launch, the service faced operational challenges, leading to a reduction in its geographical reach to just two cities—Bengaluru and Delhi. This setback revealed the challenges of managing quick delivery logistics in busy urban areas. However, Flipkart's commitment to diversifying its service portfolio remains strong, and the new partnership with ONDC shows a renewed effort to expand into the food and beverage sector.

[Source: Gadgets360]

The Indian food delivery market is experiencing rapid growth, driven by changing consumer habits and the increasing penetration of smartphones and the internet. As of 2023, the market was valued at approximately $14 billion, with projections estimating it will reach around $20 billion by 2024, reflecting a growth rate of about 25% over the next few years. Currently, Zomato and Swiggy dominate this space, capturing approximately 80% of the market share, while new entrants like Ola are also making significant inroads. Flipkart's entry could disrupt this landscape, particularly as it seeks to integrate food delivery services into its existing e-commerce platform.

To set context, the Indian food delivery market is highly competitive, and these companies engage in fierce competition through heavy discounts, loyalty programs, and service expansion. While the sector has seen rapid growth, profitability remains a challenge due to high customer acquisition costs and price wars.

With the upcoming integration, Flipkart users will soon be able to order food from a variety of partner restaurants and fast-food chains, including well-known names like Domino's and McDonald's, directly through the Flipkart app via ONDC. This is expected to launch in late 2024, allowing users to order food while shopping for other products. The convenience of having multiple services available within a single app could attract a broader customer base, especially among the 500 million internet users in India, many of whom prefer using apps for their shopping needs.

[Source: Gadgets360]

The Indian food delivery market is experiencing rapid growth, driven by changing consumer habits and the increasing penetration of smartphones and the internet. As of 2023, the market was valued at approximately $14 billion, with projections estimating it will reach around $20 billion by 2024, reflecting a growth rate of about 25% over the next few years. Currently, Zomato and Swiggy dominate this space, capturing approximately 80% of the market share, while new entrants like Ola are also making significant inroads. Flipkart's entry could disrupt this landscape, particularly as it seeks to integrate food delivery services into its existing e-commerce platform.

To set context, the Indian food delivery market is highly competitive, and these companies engage in fierce competition through heavy discounts, loyalty programs, and service expansion. While the sector has seen rapid growth, profitability remains a challenge due to high customer acquisition costs and price wars.

With the upcoming integration, Flipkart users will soon be able to order food from a variety of partner restaurants and fast-food chains, including well-known names like Domino's and McDonald's, directly through the Flipkart app via ONDC. This is expected to launch in late 2024, allowing users to order food while shopping for other products. The convenience of having multiple services available within a single app could attract a broader customer base, especially among the 500 million internet users in India, many of whom prefer using apps for their shopping needs.

How to order food on ONDC? Top Food delivery apps

Flipkart users may soon get food deliveries via ONDC

A significant advantage for Flipkart in this venture is its established delivery and logistics network. The company reported a remarkable 1.6 times increase in sales of daily essentials within its grocery business compared to the previous year, indicating a strong demand for quick and reliable delivery services. By using this existing infrastructure, Flipkart can offer competitive pricing and faster service, which are critical factors in the food delivery market. The integration with ONDC will enable Flipkart to streamline operations and provide customers with a reliable and efficient food ordering experience.

As Flipkart enters the food delivery sector, it will be interesting to observe how this development influences consumer behavior and competition among existing players. The food delivery market is characterized by fierce competition, with Zomato and Swiggy continually innovating to capture market share. For instance, Zomato reported a revenue of $1.2 billion in the fiscal year 2023, while Swiggy's revenue was approximately $1.1 billion, both showing significant year-over-year growth. Flipkart's entry could prompt these incumbents to enhance their services further, potentially leading to better deals and improved service quality for consumers.

A significant advantage for Flipkart in this venture is its established delivery and logistics network. The company reported a remarkable 1.6 times increase in sales of daily essentials within its grocery business compared to the previous year, indicating a strong demand for quick and reliable delivery services. By using this existing infrastructure, Flipkart can offer competitive pricing and faster service, which are critical factors in the food delivery market. The integration with ONDC will enable Flipkart to streamline operations and provide customers with a reliable and efficient food ordering experience.

As Flipkart enters the food delivery sector, it will be interesting to observe how this development influences consumer behavior and competition among existing players. The food delivery market is characterized by fierce competition, with Zomato and Swiggy continually innovating to capture market share. For instance, Zomato reported a revenue of $1.2 billion in the fiscal year 2023, while Swiggy's revenue was approximately $1.1 billion, both showing significant year-over-year growth. Flipkart's entry could prompt these incumbents to enhance their services further, potentially leading to better deals and improved service quality for consumers.

As Flipkart sets out on this new journey, it will need to navigate the challenges that come with entering a new market. The food delivery sector requires an understanding of consumer preferences and operational logistics. Flipkart will need to make sure that it can maintain service quality while scaling operations to meet the expected demand.

However, it’s also essential to keep in mind the possible hurdles that Flipkart may face. Flipkart will need to check compliance with the regulatory frameworks governing ONDC. This includes understanding the legal implications of operating within a government-backed network, which may have different rules than those applicable to private platforms.

More importantly, this could dilute Flipkart's brand identity as it becomes part of a broader network. The company must navigate how to position itself effectively within ONDC while still promoting its unique value propositions. Existing Flipkart customers could be confused or dissatisfied if the platform's user experience changes significantly due to this new ONDC integration. Hence, the company must ensure a smooth transition to retain customer loyalty.

Additionally, consumer preferences are continually evolving, with an increasing emphasis on health, sustainability, and local sourcing. According to a 2023 survey, 65% of consumers in India prefer ordering from restaurants that offer healthy options, and 70% are willing to pay more for sustainably sourced food. Flipkart will need to adapt its offerings to align with these trends, potentially incorporating healthier food options and promoting local restaurants to resonate with a more conscious consumer base.

As Flipkart sets out on this new journey, it will need to navigate the challenges that come with entering a new market. The food delivery sector requires an understanding of consumer preferences and operational logistics. Flipkart will need to make sure that it can maintain service quality while scaling operations to meet the expected demand.

However, it’s also essential to keep in mind the possible hurdles that Flipkart may face. Flipkart will need to check compliance with the regulatory frameworks governing ONDC. This includes understanding the legal implications of operating within a government-backed network, which may have different rules than those applicable to private platforms.

More importantly, this could dilute Flipkart's brand identity as it becomes part of a broader network. The company must navigate how to position itself effectively within ONDC while still promoting its unique value propositions. Existing Flipkart customers could be confused or dissatisfied if the platform's user experience changes significantly due to this new ONDC integration. Hence, the company must ensure a smooth transition to retain customer loyalty.

Additionally, consumer preferences are continually evolving, with an increasing emphasis on health, sustainability, and local sourcing. According to a 2023 survey, 65% of consumers in India prefer ordering from restaurants that offer healthy options, and 70% are willing to pay more for sustainably sourced food. Flipkart will need to adapt its offerings to align with these trends, potentially incorporating healthier food options and promoting local restaurants to resonate with a more conscious consumer base.

How ONDC is different from Flipkart? Is Flipkart a app on ONDC?

[Source: startuparticle.com]

In April 2024, the Indian government asked Amazon and Flipkart to add ONDC storefronts to their homepages to improve how they handle orders. In the most recent update, Flipkart plans to start by integrating its logistics service, Ekart, with ONDC. Although the specifics of how this integration will function for users on the Flipkart app or website is unclear, it’s expected that there will be a dedicated 'ONDC section' similar to the one in the PayTM app, where users can easily access ONDC offerings. We will try to keep this blog updated with the latest information as soon as it becomes available.

In conclusion, Flipkart's partnership with ONDC marks a major change in its services as it steps into the food delivery market. This initiative is designed to meet the increasing demand for food delivery and to make Flipkart a strong player in a competitive field. By using its established logistics network and improving the customer experience with smooth integration, Flipkart has the potential to transform the food delivery scene in India. As this new venture develops, many will be watching to see how it affects consumer habits and competition in the food delivery industry. This could lead to a more vibrant marketplace, benefiting both consumers and local businesses alike, as Flipkart strives to create a complete ecosystem for its users.

If you're a seller looking to sell on ONDC, SellerSetu is here to support you every step of the way. Fill out the form below to book a demo and discover how our expertise can ease your onboarding process and enhance your experience. Our platform not only helps you sell online but also supports the growth and expansion of your business. Start selling on the best online marketplace and experience the benefits of ONDC.

[Source: startuparticle.com]

In April 2024, the Indian government asked Amazon and Flipkart to add ONDC storefronts to their homepages to improve how they handle orders. In the most recent update, Flipkart plans to start by integrating its logistics service, Ekart, with ONDC. Although the specifics of how this integration will function for users on the Flipkart app or website is unclear, it’s expected that there will be a dedicated 'ONDC section' similar to the one in the PayTM app, where users can easily access ONDC offerings. We will try to keep this blog updated with the latest information as soon as it becomes available.

In conclusion, Flipkart's partnership with ONDC marks a major change in its services as it steps into the food delivery market. This initiative is designed to meet the increasing demand for food delivery and to make Flipkart a strong player in a competitive field. By using its established logistics network and improving the customer experience with smooth integration, Flipkart has the potential to transform the food delivery scene in India. As this new venture develops, many will be watching to see how it affects consumer habits and competition in the food delivery industry. This could lead to a more vibrant marketplace, benefiting both consumers and local businesses alike, as Flipkart strives to create a complete ecosystem for its users.

If you're a seller looking to sell on ONDC, SellerSetu is here to support you every step of the way. Fill out the form below to book a demo and discover how our expertise can ease your onboarding process and enhance your experience. Our platform not only helps you sell online but also supports the growth and expansion of your business. Start selling on the best online marketplace and experience the benefits of ONDC.

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