The quick commerce sector in India is gearing up for increased competition, with e-commerce giant Flipkart making strides into the segment. In the next six to eight weeks, Flipkart plans to launch 10-15 minutes delivery services in several cities, including Bengaluru, Delhi (NCR), and Hyderabad, by establishing a network of dark stores. This move aligns with the industry trend, as experts anticipate quick commerce to carve a significant share from traditional e-commerce in India.
Recent successful performances by Zomato’s Blinkit, Swiggy’s Instamart, and Zepto have convinced investors of the viability of quick commerce in India. Zepto recently achieved unicorn status, Blinkit (formerly Grofers) experienced a turnaround, and Swiggy Instamart exhibited impressive growth. Flipkart’s strategic expansion into quick commerce is evident from recent launches, including same-day delivery in 20 cities and the introduction of flower and cake delivery during the Valentine season in February 2024.
Sources suggest that Flipkart aims to offer a broader catalog compared to existing players like Zepto, Instamart, and Blinkit. While focusing on fast-moving consumer goods (FMCG), groceries, and daily essentials, Flipkart also plans to push categories such as electronics and fashion.
A Flipkart spokesperson emphasized their commitment to meeting evolving customer expectations by enhancing delivery capabilities and expanding product offerings. The spokesperson mentioned recent investments to enable same-day delivery in various categories, including mobiles, essential items, electronics, home appliances, fashion, books, and lifestyle products.
In the quick commerce landscape, the top three players—Blinkit, Swiggy Instamart, and Zepto—have achieved significant scale, with daily order volumes ranging from 3 to 6 lakh. Blinkit’s average revenue run rate (ARR) stands at Rs 12,000 crore in the ongoing fiscal year, while Swiggy Instamart’s ARR is around Rs 8,000-8,500 crore. Zepto’s gross merchandise value has reached Rs 7,000 crore following its recent funding round.
Despite the market dominance of current players, there are challenges ahead, with the market potentially not being large enough to sustain numerous competitors. This raises questions about the sustainability of various operating models and emphasizes the need for continuous adaptation in the dynamic quick commerce landscape.