News Update

Flipkart Enters Quick Commerce Sector, Ramping Up Infrastructure for Expansion

• ByStartupStory     |    March 8, 2024

Flipkart, India’s e-commerce behemoth, is gearing up to enter the quick commerce sector, intensifying competition with Zepto and Blinkit. According to sources familiar with the matter, Flipkart is rapidly expanding its infrastructure to facilitate quick commerce operations. “Flipkart will introduce 10-15 minutes delivery in at least a dozen cities within the next six to eight weeks,” revealed one source under anonymity. The company is establishing a network of dark stores across multiple cities, including Bengaluru, Delhi (NCR), and Hyderabad.

This move by Flipkart comes amidst predictions that quick commerce will soon challenge traditional e-commerce in India. The potential market for quick commerce in India is valued at approximately $45 billion, as per a 2022 Redseer report. Notably, Zepto, Blinkit (formerly Grofers), and Swiggy’s Instamart have demonstrated resilience and growth in recent years, garnering investor confidence in the concept’s viability.

Analysts note Flipkart’s strategic steps towards quick commerce, such as launching same-day delivery in 20 cities and offering flower and cake delivery during Valentine’s season. “If you look at Flipkart’s recent launches, it hints at the firm’s foray into quick commerce,” remarked an analyst covering the e-commerce sector. Flipkart aims to provide a broader product catalog compared to existing players like Zepto, Instamart, and Blinkit.

A Flipkart spokesperson affirmed the company’s commitment to delivering a wide range of products promptly. “Over the past few months, we have made several investments to enhance our delivery capabilities,” the spokesperson stated. Flipkart aims to cater to evolving customer expectations by offering speed, variety, and quality service.

In the quick commerce landscape, Blinkit processes around 6 lakh orders daily, while Swiggy InstaMart and Zepto handle approximately 5 lakh and 3 lakh orders respectively. Blinkit boasts an average revenue run rate of Rs 12,000 crore, followed by Swiggy Instamart with around Rs 8,000-8,500 crore, and Zepto nearing Rs 7,000 crore in gross merchandise value.

Despite the competition, Flipkart’s potential acquisition discussions with Dunzo indicate the market’s consolidation. However, sustaining growth in a competitive market remains a challenge, with the focus shifting towards expanding product catalogs and facilitating higher-value transactions.

Follow Startup Story