In a major development of the E-commerce industry, Flipkart, India’s e-commerce giant is set to step into the quick commerce sector according to the sources reported by Entracker.
Strategic Expansion into Quick Commerce
According to the reports, the company is planning to establish a network of dark stores in major cities like Bengaluru, Delhi NCR, and Hyderabad. To offer lightning-fast deliveries within 10-15 minutes in at least a dozen cities in the next 6 to 8 weeks.
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Diverse Product Range Focus
Flipkart is planning to have a diverse product range, focusing on fast-moving consumer goods (FMCG), groceries, daily essentials, electronics, and fashion. This strategy sets them apart from existing players in the market.
Competing with Established Players
Speaking of the competition, Flipkart will directly go head-to-head with established quick commerce players like Blinkit, Swiggy Instamart, and Zepto, who have already gained significant traction in the market.
Financial Figures and Commitment to Excellence
Financial figures indicate Blinkit’s average revenue run rate (ARR) of INR 12,000 Cr., Swiggy Instamart’s ARR at INR 8,000-8,500 Cr., and Zepto’s gross merchandise value (GMV) nearing INR 7,000 Cr. A Flipkart spokesperson mentioned, “We are committed to meeting evolving customer expectations and delivering excellence in value, selection, and speed.”
Challenges and Market Dynamics Shift
While the quick commerce market is witnessing growth, sustainability and competition remain challenges. Some players, like Dunzo, backed by Reliance and Google, have faced difficulties, reporting lower revenue and funding challenges. Industry experts anticipate a shift in market dynamics, with quick commerce gaining prominence over traditional e-commerce in India.
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Bright Future for Quick Commerce
Companies like Zomato’s Blinkit, Swiggy’s Instamart, and Zepto showing resilience, and investor confidence in the future of quick commerce in India remains strong. The total addressable market (TAM) for quick commerce in the country is valued at nearly USD 45 billion, according to a 2022 Redseer report.
