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Flipkart to expand into food and beverage category on govt-backed ONDC platform

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Flipkart, the ecommerce giant, is reportedly planning to enter the food and beverage (F&B) category on the government-backed Open Network for Digital Commerce (ONDC) soon.

This indicates that customers will soon have the option to order from a variety of restaurants and fast food chains like Domino’s and McDonald’s via the Flipkart app.

Flipkart is actively engaging in discussions with ONDC for the integration process, as reported by ET, citing sources.

The report mentioned that food and beverages (F&B) is only the beginning for Flipkart on ONDC, with logistics to come next, offering competitive prices and swift responses. Despite being in the final stages of integration with ONDC in February, Flipkart’s logistics arm, Ekart, has not been very active.

Continue Exploring: Flipkart’s grocery segment expands rapidly, achieving 1.6X YoY growth

The company plans to operate on the buyer side of ONDC, allowing consumers to order food while browsing fashion and apparel on Flipkart. This new service is expected to make Flipkart’s F&B ordering operations more efficient, as it eliminates the need to maintain a fleet of food delivery personnel or convince restaurants to list their offerings on Flipkart, as per the report.

In April, reports indicated that the government had urged ecommerce giants Amazon and Flipkart to establish ONDC storefronts on their websites to support the network in expanding operations, streamlining deliveries, and resolving any issues or delays.

This comes after ONDC reported rapid growth in May, with a record 89 Lakh transactions across retail and ride-hailing segments, marking a 23% month-on-month (MoM) increase.

Continue Exploring: ONDC sees record growth in May, registers 89 Lakh transactions

Launched in 2021 by the Department for Promotion of Industry and Internal Trade (DPIIT), ONDC is an open protocol-based network designed to facilitate local commerce in various sectors such as grocery, mobility, and more.

Leveraging this platform, the government aims to increase India’s ecommerce penetration to 25%, with ONDC targeting a gross merchandise value (GMV) of $48 billion in the coming years.

Many startups and major companies have joined the ONDC network since its inception to improve their business operations.

In April, Ola was working on a feature that would allow users to buy groceries, fashion items, and apparel directly through its app. Likewise, PhonePe introduced services such as food delivery and ticket booking through the ONDC platform.

Companies like Delhivery, Dainik Jagran, Uber, IDFC Bank, Kotak, Dunzo, and Tata Neu have integrated their services with ONDC. Furthermore, the Adani Group, led by Gautam Adani, is reportedly exploring opportunities to enter the ecommerce and fintech sectors through the ONDC platform.

Reliance Retail, another conglomerate, has reportedly launched a pilot program on the ONDC platform through Fynd to explore opportunities within the network.

Additionally, 12 Indian unicorn startups—including EaseMyTrip, OfBusiness, Zerodha, and PhysicsWallah—signed letters of intent to join the Open Network for Digital Commerce (ONDC), according to a May announcement from the Department for Promotion of Industry and Internal Trade (DPIIT).

Continue Exploring: Govt pushes for ONDC shopfronts on e-commerce giants Amazon and Flipkart

SnackTeam
SnackTeamhttps://snackfax.com
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