Swiggy shares slipped nearly 3% to Rs 333.80 in early trade on Thursday after reports that Flipkart is evaluating a foray into India’s online food delivery market.
According to Economic Times, the Walmart-owned ecommerce major is considering launching a pilot in Bengaluru around May–June, with a broader rollout possible by late 2026 or early 2027. The move has raised concerns about rising competition in a segment currently dominated by Swiggy and Zomato.
Flipkart’s potential entry spooks investors
The food delivery market, estimated at $9 billion in FY25 and projected to grow to $25 billion by FY30, has largely consolidated into a two-player structure. Any entry by a deep-pocketed player like Flipkart could intensify competition, especially as the company prepares for a public listing and seeks new growth engines.
Reports suggest Flipkart is weighing two approaches — building a standalone platform or launching through the government-backed Open Network for Digital Commerce (ONDC). It has also begun building a team for the initiative.
Logistics strength adds to competitive risk
Flipkart’s expanding quick commerce arm, Minutes, currently operates over 800 dark stores. This existing infrastructure could provide logistical leverage if it enters food delivery, particularly in dense urban markets where speed and reliability are key.
While Swiggy recently reported improved demand and 20.5% year-on-year growth in gross order value in the October–December quarter, the possibility of a new large-scale competitor appears to have triggered near-term selling pressure in the stock.
