Flipkart to enter quick commerce sector, compete with Blinkit, Zepto
Flipkart is gearing up to enter the quick commerce sector by offering instant delivery services to its customers on the lines of Instamart, Blinkit, and Zepto. As per Entrackr, the Walmart-owned company plans to launch 10-15 minute delivery in 12 cities within the next six to eight weeks. The move comes as quick commerce is predicted to take a significant share of India's e-commerce market, with a potential worth of nearly $45 billion, according to a 2022 Redseer report.
Infrastructure and catalog expansion plans
To support its quick commerce venture, Flipkart is constructing a network of stores in various cities, including Bengaluru, Delhi, and Hyderabad. The company's product range is anticipated to be broader than competitors like Zepto and Blinkit, focusing primarily on FMCG, grocery, and daily essentials. According to Entrackr, Flipkart intends to promote categories such as electronics and fashion. The company has made several investments to improve its delivery capabilities, including same-day delivery service in 20 cities.
Competition with Zepto and Blinkit
Flipkart's entry into quick commerce is happening at a time when companies like Zepto and Zomato's Blinkit are demonstrating resilience in the market. Both firms have successfully convinced investors of their potential in India, with Zepto achieving unicorn status and Blinkit's turnaround being a bright spot for its owners. These companies have also been steadily expanding and diversifying their offerings, moving beyond grocery delivery to include a wide range of items.
Quick commerce sector's market growth
In the past three years, quick commerce has made significant progress in the top 15 Indian cities. The leading players in this segment—Blinkit, Swiggy Instamart, and Zepto—have managed to achieve considerable scale. Blinkit reportedly processes around 600,000 orders daily, while Instamart and Zepto's daily volumes are around 500,000 and 300,000, respectively. Bernstein analysts predict that quick commerce gross merchandise volume (GMV) will grow to $6.2 billion by 2025, accounting for about 40% of the online grocery delivery category.
Flipkart's potential acquisition of Dunzo
In addition to its quick commerce plans, Flipkart is also considering acquisition of instant-delivery startup Dunzo. However, Reliance's overarching ownership of Dunzo has complicated the discussions. Dunzo has faced difficulties raising new funding in the past two years and reported only Rs. 226 crore in revenue in FY23 with losses of Rs. 1,801 crore. As the market may not accommodate numerous players, this acquisition could be a strategic move for Flipkart to strengthen its position in the quick commerce sector.
