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.
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.
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 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.