The quick commerce sector is gearing up for heightened competition as India’s e-commerce giant, Flipkart, sets its sights on this segment. According to three sources familiar with the plan, Flipkart is actively building infrastructure for its quick commerce venture.
One source, who preferred to remain anonymous, revealed, “Flipkart will introduce 10-15 minutes delivery in at least a dozen cities within the next six to eight weeks. It’s establishing a network of dark stores in various cities, including Bengaluru, Delhi (NCR), and Hyderabad, among others.”
Flipkart’s entry into the quick commerce arena aligns with the industry’s anticipation that quick commerce is poised to capture a significant share of India’s e-commerce market. The potential market size for quick commerce in India is estimated to be nearly $45 billion, as per a 2022 Redseer report. Notably, quick commerce players like Zomato’s Blinkit, Swiggy’s Instamart, and Zepto have demonstrated resilience, attracting investors and validating the concept’s future in India.
Zepto recently secured unicorn status, while Blinkit (formerly Grofers) experienced a successful turnaround, and Swiggy Instamart displayed notable growth with improved margins.
An anonymous analyst covering e-commerce and quick commerce segments observed, “Flipkart’s recent initiatives strongly suggest its entry into quick commerce. It recently launched same-day delivery in 20 cities and began delivering flowers and cakes around Valentine’s season in February 2024.”
Sources indicate that Flipkart aims to offer a broader catalog than existing players such as Zepto, Instamart, and Blinkit. The company will prioritize categories like FMCG, grocery, and daily essentials, while also promoting items in electronics and fashion.
Responding to queries, a Flipkart spokesperson emphasized their commitment to delivering a diverse range of products promptly. The spokesperson stated, “Over the past few months, we have made several investments to enhance our delivery capabilities, including adding same-day delivery in 20 cities. This covers mobiles, essential items, electronics, home appliances, fashion, books, and lifestyle products.”
While existing quick commerce players have expanded and diversified, Flipkart’s entrance is expected to intensify competition. The sector’s top three players—Blinkit, Swiggy Instamart, and Zepto—have achieved significant scale. Blinkit processes around 6 lakh orders daily, while Swiggy Instamart and Zepto handle approximately 5 lakh and 3 lakh orders, respectively.
Data from sources and public information reveal that Blinkit’s average revenue run rate for the ongoing fiscal year is Rs 12,000 crore, Swiggy Instamart’s ARR (GMV) is around Rs 8,000-8,500 crore, and Zepto’s gross merchandise value nears Rs 7,000 crore.
As the market consolidates, Flipkart’s foray into quick commerce adds another dimension to the competition, raising questions about sustainability and the evolution of operating models in the dynamic sector.
