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Flipkart is preparing to enter India's food delivery market, with around 300 restaurants in Bengaluru currently in discussions to participate in the company's proposed pilot, reported The Financial Express citing multiple restaurant owners familiar with the plans.

The e-commerce company is looking to begin operations in the city within one to two months, which could put the pilot launch in September or October, the report said.

The proposed restaurant network spans both large local establishments and quick-service restaurant chains with a presence across India. Flipkart is also looking to have restaurants across different price ranges on the platform.

What Flipkart's Food Delivery Plan Looks Like

Unlike an approach through the government-backed Open Network for Digital Commerce (ONDC), Flipkart plans to operate the food business through a standalone app.

Earlier media reports revealed that the company decided against launching as a buyer-side application on ONDC. A standalone marketplace requires Flipkart to build its restaurant base, technology infrastructure and delivery network independently.

The company is currently negotiating directly with restaurants for the Bengaluru pilot.

Flipkart also held initial discussions with the National Restaurant Association of India (NRAI) about entering the category. Those talks did not progress beyond the initial stage, although Flipkart could take them forward before a potential expansion across India, the report said.

Discounts Now Part Of The Proposed Model

The commercial terms under discussion have evolved since Flipkart began approaching restaurants in February.

The initial proposal involved a 10-11 per cent commission, a requirement for restaurants to maintain the same prices on Flipkart as in their offline outlets and an offering without discounts.

While the commission and price-matching conditions remain, Flipkart is now expected to offer discounts on the platform, the media organisation reported.

The proposed arrangement would divide the cost of discounts according to order value. Restaurants would fund discounts on orders below Rs 149-199, while orders above Rs 199-249 would involve cost-sharing between the restaurant and Flipkart. The proportion paid by each side could vary depending on the order value.

These terms are not final and could be modified based on the performance of the pilot, the report said.

Will Restaurants Get Free Listings?

Another proposal under discussion concerns how restaurants will appear in search and discovery on the platform.

Flipkart and participating restaurants are considering keeping listings and discovery free from advertising charges and paid promotions. Rankings could instead be based on customer ratings and reviews, although the proposal has not yet been finalised.

The approach would be notable in a market where restaurant advertising has become an important source of revenue for established food delivery companies.

Flipkart Faces Zomato, Swiggy And New Entrants

The planned Bengaluru launch comes more than six months after Flipkart's food delivery plans were first reported in February.

The company is entering a market led by Zomato and Swiggy, which together account for the vast majority of food delivery orders.

Jefferies estimates India's food delivery market at around $9 billion and expects it to nearly triple to approximately $25 billion by FY30.

Competition has also expanded beyond the two leading platforms. Rapido's Ownly has entered with a zero-commission model and a flat delivery fee per order, while Swiggy's Toing offers a value-focused format with dine-in menu prices and lower restaurant take rates.