Flipkart, owned by Walmart, is gearing up to challenge India’s food delivery giants Zomato and Swiggy. The Bengaluru-based company has expanded its internal food delivery service to over 8,000 employees and is preparing for a public launch. The service operates as a separate tab on Flipkart’s main shopping app and uses its logistics arm, Ekart, to manage deliveries.

The market is ripe for expansion, with online delivery growing at an estimated 18% to 20% annually. Despite this, online delivery still accounts for just over 15% of India’s broader food services industry. Zomato and Swiggy dominate the market, serving an estimated 85 to 95 million customers per year.

Other players, like ride-hailing company Rapido, are also expanding their food delivery services. Swiggy has launched Toing, a cheaper alternative, reflecting growing pressure on the industry’s existing pricing model. Flipkart’s entry aims to bring down costs for restaurants, potentially offering a base commission of about 10%, compared to 20% to 25% on Zomato and Swiggy. However, winning customers might be challenging, as new entrants can save customers just ₹20 to ₹30 per order.

Flipkart plans to launch its service nationally by late October and expand to five to six cities by the end of the year. The company remains uncertain about its IPO plans, despite expanding into businesses that could increase app usage.