Flipkart Users to Enjoy New Food Delivery Service via ONDC Restaurants

Walmart-owned ecommerce giant Flipkart is reportedly gearing up to enter the food and beverages (F&B) category on the government-backed Open Network for Digital Commerce (ONDC).

This strategic move will enable Flipkart users to order from a variety of restaurants and fast food outlets, including popular names like Domino’s and McDonald’s, directly through the Flipkart app. According to sources cited by ET, Flipkart is actively discussing the integration process with ONDC.

Expanding Services and Future Plans

The integration of F&B services is just the beginning for Flipkart on ONDC. Following this, the company plans to incorporate logistics services, promising competitive prices and prompt responses.

Despite being in advanced stages of integration with ONDC as of last February, Flipkart's logistics arm, Ekart, has not yet fully leveraged the network. By operating on the buyer side of ONDC, Flipkart aims to streamline the process for shoppers, allowing them to order food while browsing for fashion and apparel.

This approach is expected to be cost-effective, as Flipkart will not need to deploy a dedicated fleet of food delivery personnel or convince restaurants to join its platform.

Government Push for ONDC Integration

The government has been actively encouraging ecommerce giants like Amazon and Flipkart to integrate ONDC storefronts on their home pages. This initiative aims to scale up ONDC operations, facilitate deliveries, and address any issues or delays. The move is part of a broader strategy to enhance the ONDC network's efficiency and reach.

ONDC's Rapid Growth and Future Prospects

ONDC has shown significant growth, reporting a record 89 lakh transactions across retail and ride-hailing segments in May, marking a 23% month-on-month increase.

Launched in 2021 under the Department for Promotion of Industry and Internal Trade (DPIIT), ONDC is designed as an open protocol-based network to enable local commerce across multiple segments, including grocery and mobility.

The government aims to increase India’s ecommerce penetration to 25%, targeting a gross merchandise value (GMV) of $48 billion in the next few years.

Broader Industry Adoption of ONDC

Since its inception, ONDC has attracted numerous startups and major companies looking to enhance their business operations. For instance, Ola is developing a feature to let users purchase groceries, fashion, and apparel through its app.

Similarly, PhonePe has introduced services like food delivery and ticket booking via ONDC. Other companies like Delhivery, Dainik Jagran, Uber, IDFC Bank, Kotak, Dunzo, and Tata Neu have also integrated some of their services with ONDC.

Major Conglomerates and ONDC

Prominent business groups are also exploring opportunities with ONDC. The Adani Group is reportedly considering entering the ecommerce and fintech sectors through the platform. Reliance Retail has rolled out a pilot program on ONDC via Fynd to test the waters.

Support from Indian Startups

In addition to these developments, DPIIT announced in May that 12 Indian unicorn startups, including EaseMyTrip, OfBusiness, Zerodha, and PhysicsWallah, have signed letters of intent to join ONDC. This broad-based support from various sectors underscores the potential of ONDC to transform India’s digital commerce landscape.