Quick-Commerce Firms Face E-Commerce Pushback as Flipkart Enters the Fray
Quick-commerce companies like Blinkit, Zepto, and Instamart have been encroaching on traditional e-commerce territory by expanding their offerings to include products usually sold on e-commerce platforms. In response, e-commerce giants are now gearing up to challenge these quick-commerce firms on their home turf.
Flipkart is making a bold move by opening 100 dark stores for its Flipkart Minutes service, marking its entry into the quick commerce sector. Through Flipkart Minutes, the company will deliver groceries, fruits, vegetables, and electronics. Flipkart has been testing this service with its employees at a store near its headquarters and in a few other locations. Soon, Flipkart Minutes will launch in over a dozen cities, promising delivery times of 10-15 minutes.
Flipkart aims to ramp up Flipkart Minutes during the festive season, making a significant impact in the quick commerce space. While Blinkit and Swiggy Instamart currently operate over 500 dark stores each and Zepto has around 350, Flipkart’s rapid deployment of 100 dark stores in just a few weeks positions it as a formidable contender.
This strategic pivot is notable given that just over two years ago, Flipkart CEO Kalyan Krishnamurthy had dismissed the 10-minute delivery model as unsustainable, advocating instead for a 30-45 minute delivery window. “I don’t think that’s the right long-term customer model,” he had said. “We would look at a more sustainable business which offers it in 30-45 minutes with good value and selection.”
Despite this earlier stance, Flipkart had already been exploring faster delivery options. In 2020, it launched Flipkart Quick, a 90-minute delivery service for electronics and groceries. However, Flipkart Quick struggled to gain traction and scaled back its operations by late 2022, with the company realigning its priorities.
Now, Flipkart is ready to re-enter the quick commerce space with renewed vigor through Flipkart Minutes. This move appears to be driven by the success and rapid expansion of competitors like Zepto and Blinkit, which have gained popularity in urban India. These companies have ambitions beyond groceries, aiming to sell a wide range of items, including electronics, posing a threat to Flipkart’s market share.
If Blinkit and Zepto can successfully deliver mobile phones in 10 minutes, they could attract a significant number of customers, cutting into Flipkart’s business. To preempt this threat, Flipkart is launching its own quick commerce service.
However, this transition won’t be straightforward. Flipkart, now more than a decade old, must shift its focus from regular commerce to quick commerce, a challenging feat. Previous ventures like Flipkart Nearby (2015), Flipkart Supermart (2017), and Flipkart Quick (2020) were ultimately shuttered. Additionally, Flipkart lags behind Amazon in affluent urban areas, which could impact brand loyalty among quick commerce customers.
Nevertheless, Flipkart is determined to enter the quick commerce arena, and with strategic execution, it could mount a serious challenge to the fast-growing incumbents, Zepto and Blinkit.