Flipkart to enter FB market through ONDC; will enable users to order from a wide range of restaurants via the Flipkart app

The massive e-commerce company Flipkart, owned by Walmart, intends to penetrate the food and beverage (F&B) industry, through the Open Network for Digital Commerce (ONDC). Flipkart customers will soon be able to place orders using the Flipkart app from a variety of eateries, according to sources.

The government introduced ONDC in 2022 as a rival to big online retailers like Amazon and Flipkart. The effort seeks to reduce the dominance of large players and provide possibilities for small businesses. 

To enhance order efficiency and operations, the government requested in April that Amazon and Flipkart establish ONDC stores on their main pages. It aims to improve network performance and facilitate on-time delivery.

Flipkart will function as the customer-facing portion of the ONDC platform, enabling consumers to place food orders in addition to other purchases like clothing and housewares. Because of the connection, Flipkart won't need to hire a separate fleet of delivery drivers or ask eateries to work directly with them. Rather, Flipkart consumers will be able to see the food and beverage category merchants from ONDC.

Users may gain a lot from Flipkart's entry into the F&B industry through ONDC, including competitive pricing. Based on reports, Flipkart achieved the advanced phases of integration in February 2024, but it hasn't launched its meal ordering service yet. The new service will reduce the need for extra delivery infrastructure, streamlining Flipkart's F&B operations and increasing cost-effectiveness.

A number of other significant businesses are also looking at integrating their services with ONDC, including Amazon, Ola, PhonePe, Reliance Industries, and the Adani groups.