Flipkart Minutes: The E-Commerce Giant’s Foray into Quick Commerce

Flipkart, India’s e-commerce giant backed by Walmart, is preparing to make a significant entry into the quick commerce sector with its new venture, ‘Flipkart Minutes.’ This move, expected to launch by mid-July, marks Flipkart’s third attempt to penetrate the rapidly growing market for ultra-fast delivery services.

The e-commerce platform’s previous ventures into the quick commerce space, including Flipkart Quick, which promised 90-minute deliveries, did not achieve the desired success. However, with Flipkart Minutes, the company is aiming to deliver within a remarkable 15-minute window. This initiative comes at a time when the quick commerce market in India is projected to grow from USD 3.34 billion in 2024 to USD 9.95 billion by 2029, according to Mordor Intelligence.

Rooting for success

Set to launch around July 15, 2024, sources close to the matter reveal that to make Flipkart Minutes a success, the company plans to leverage its robust supply chain to ensure swift delivery times, targeting a comprehensive product catalog. While groceries and daily essentials will form the core offerings, Flipkart Minutes will also include electronics, FMCG, fashion, and other essential items.

Flipkart is not just stopping at quick commerce; it is also bolstering its grocery fulfillment centers to improve slotted deliveries. Recently, Flipkart inaugurated a new grocery store in Jaipur, Rajasthan, capable of dispatching over 6,500 orders daily to cities like Bikaner, Jaisalmer, Jodhpur, and Kota. This is part of a broader strategy to establish a network of dark stores across key cities such as Bengaluru, Delhi NCR, and Hyderabad, enabling 10-15 minute deliveries in at least a dozen cities within the next six to eight weeks.

Entering a Dynamic Market.

Flipkart Minutes will be entering a field already dominated by established players like Zomato-backed Blinkit, Swiggy’s Instamart, and Zepto. Blinkit, for instance, processes around 600,000 orders daily, with Swiggy Instamart and Zepto handling approximately 500,000 and 300,000 orders, respectively. These companies have shown significant growth and resilience, with Blinkit’s average revenue run rate at INR 12,000 crore and Swiggy Instamart’s ARR at INR 8,000–8,500 crore. Zepto’s gross merchandise value is nearing INR 7,000 crore.

Flipkart’s renewed focus on quick commerce despite its earlier unsuccessful attempts, including a failed deal with Zepto over disagreements on stake allocation, can be attributed to the surge in demand for ultra-fast deliveries, especially post-Covid.

As per industry experts, there is a shift in market dynamics, with quick commerce potentially overshadowing traditional e-commerce in India, given the total addressable market valued at nearly $45 billion, according to a 2022 Redseer report.

Flipkart’s substantial investments to enhance its delivery capabilities, including the introduction of same-day delivery in 20 cities, special delivery services for occasions like Valentine’s Day, and now its renewed interest in the quick commerce market, underscore Flipkart’s commitment to meet evolving customer expectations by providing value, selection, and speed.

Flipkart Minutes represents a strategic and bold move by Flipkart to carve out a significant share of the quick commerce market. With an enhanced supply chain, a comprehensive product range, and a focus on ultra-fast delivery, Flipkart aims to redefine the quick commerce landscape in India. As the company gears up for this launch, it will be interesting to see how Flipkart Minutes competes with established players and navigates the challenges of this burgeoning industry.

Leave a Reply

Your email address will not be published. Required fields are marked *

LATEST NEWS