Restaurant India News: Eternal, Swiggy Shares Fall as Flipkart Plans Entry into Food Delivery Market

The shares of Eternal and Swiggy fell up to 3 percent after reports said Flipkart is planning to enter India’s online food delivery market.

As per reports, the Walmart-owned e-commerce company is evaluating a pilot launch in Bengaluru between May and June this year. If the trial is successful, a larger rollout could take place by late 2026 or early 2027.

Sources said that Flipkart is considering two options — building its own food delivery platform or launching a buyer-facing app on the government-backed Open Network for Digital Commerce (ONDC). The company has reportedly started hiring for the project.

If it goes ahead, Flipkart will compete directly with Zomato and Swiggy, which currently lead the food delivery market in India. India’s online food delivery market is estimated to be around $9 billion in FY25 and is expected to grow to nearly $25 billion by FY30, according to Jefferies. The sector has seen consolidation in recent years after several smaller players exited. This is not Flipkart’s first attempt at entering the segment. About two years ago, it explored joining the space through ONDC, but those plans did not move forward.

The renewed interest comes at a time when food delivery demand is rising, especially for quick and café-style formats. Zomato and Swiggy both reported over 20 percent year-on-year growth in gross order value in the October–December quarter.

Flipkart has also been expanding its quick commerce arm, Minutes, which now operates more than 800 dark stores. This network could help the company if it decides to enter food delivery, especially in large cities. The move comes as Flipkart prepares for its initial public offering and looks to expand beyond its core e-commerce business.