Flipkart, the Walmart-backed Indian e-commerce leader, is gearing up to enter the food delivery space and take on the established players Zomato and Swiggy. The move places it in a tough arena where earlier efforts by Amazon and Google have already fallen short.

The Bengaluru firm is running an internal test of its food delivery offering and has grown the pilot from a few hundred staff to more than 8,000, according to two sources close to the development. It has also rolled out a dedicated group of delivery riders via its logistics unit Ekart, kept apart from those handling its quick commerce orders, as it readies for a wider release.

The staff-only service shows up as a distinct section inside the main Flipkart shopping app, next to its Minutes quick commerce feature and travel options. It pulls in eateries from the government-supported ONDC network as well as restaurants signed up directly by Flipkart.

Delivery workers in jerseys marked with the Eat-in by Minutes name have started handling orders on Bengaluru streets, where the company is based.

Flipkart is stepping into a market that brokerage Bernstein sees expanding 18 to 20 percent each year. Online delivery still makes up just over 15 percent of India's overall food services sector. Zomato and Swiggy together reach an estimated 85 million to 95 million paying users annually, per Bernstein. This highlights both their strong hold and the growth potential for new services in a country with more than a billion internet connections.

Flipkart is not alone in trying to disrupt the space. Ride hailing firm Rapido has been growing its Ownly food delivery arm that charges restaurants no commission. Swiggy has introduced Toing, a separate app for budget meals. These steps point to rising pressure on pricing and restaurant fees.

Monopoly is bad, but duopoly is more pathetic, said Sagar Daryani, president of the National Restaurant Association of India, which speaks for over 500,000 restaurants. What one does, the other follows suit.

Daryani noted that restaurants have needed other options beyond the two main platforms for some time.

Flipkart follows other well funded firms that tried and exited the market. Amazon started a food ordering service in Bengaluru in 2020 but closed it after two years. Google's Areo app, which combined food ordering with other services, also struggled. Uber left in 2020 by selling its Uber Eats India operations to Zomato.

Daryani sees a key difference with Flipkart. Zomato and Swiggy started with meal delivery and later moved into quick commerce. Flipkart is moving the other way, using its e commerce base and quick commerce growth to support food delivery.

Flipkart's quick commerce strength will carry over to food delivery, making it leaner and more efficient, Daryani told TechCrunch.

Restaurants hope new players will lower the cost of online sales. Daryani, who is also co founder and CEO of dumpling chain Wow! Momo Foods, said Flipkart has offered a base commission near 10 percent, versus the 20 to 25 percent restaurants usually pay Zomato and Swiggy.

Commissions are only one part of the cost. When advertising, discounts, and promotions are added, restaurants can spend 40 to 50 percent of an order's value on the big platforms, Daryani said. He expects Flipkart to keep total costs near 15 to 16 percent, allowing restaurants to retain more per order.

Still, signing up restaurants is one challenge while attracting customers is another. Bernstein estimates new services might save customers only 20 to 30 rupees per order through efficiency gains, which may not pull users from Zomato and Swiggy. The incumbents could also respond with deeper discounts.

Flipkart does not plan to stay only in Bengaluru. It has told restaurants it aims to launch publicly by the end of October and reach five or six cities by year end, Daryani said.

The food delivery effort comes as Flipkart's planned stock listing stays on hold. Chief Executive Kalyan Krishnamurthy recently gave no timeline for an IPO, even as the company adds services to increase app visits.

Flipkart's moves occur amid rising competition in Indian e commerce. Quick commerce platforms that began with groceries now sell phones and other items, creating more direct rivalry with Flipkart and Amazon.

Flipkart did not reply to a request for comment.