Walmart-owned Flipkart is rapidly closing the gap with India’s quick-commerce leaders, as it continues to expand its delivery service, Flipkart Minutes. Launched in August 2024, the service has seen significant growth, now delivering between 1.1 million and 1.2 million orders daily, a substantial increase from approximately 390,000 to 400,000 orders in November. This positions Flipkart Minutes close to Swiggy’s Instamart, which currently delivers around 1.4 million orders per day, according to sources familiar with the operations.

Flipkart’s entry into the quick-commerce market comes as a response to established players like Instamart, Blinkit, and Zepto, which have dominated the sector since their respective launches during the pandemic. Instamart was introduced in 2020, followed by Zepto in 2021, while Blinkit, formerly known as Grofers, has been operational since 2013. These companies have solidified their positions as the top quick-commerce platforms in India, with Blinkit leading the market with approximately 3.4 million to 3.6 million daily orders, followed by Zepto at around 2.4 million to 2.6 million, as reported by market research firm Datum Intelligence.

Expansion of Infrastructure

Flipkart has aggressively expanded its delivery infrastructure to support this growth. The Minutes service now operates about 1,020 to 1,050 micro-fulfillment centers—small warehouses located near customers to facilitate quick deliveries—up from 600 in January and around 340 a year ago. The company aims to increase this number to 1,500 by the end of 2026, adding approximately 100 facilities each month. This expansion is crucial as it allows Flipkart to leverage its existing e-commerce customer base, which has been cultivated over years of investment.

According to Satish Meena, an adviser at Datum Intelligence, Flipkart’s established customer pool gives it a significant advantage. “Flipkart is already a serious player,” he stated. “Once you open 1,000 dark stores and [are] doing a million orders per day, it’s serious enough.” The service has also seen a high rate of customer retention, with 65% to 70% of monthly purchasers being repeat buyers. Additionally, transactions per customer have increased by 50% to 60% compared to the previous year.

Market Dynamics and Competition

As Flipkart grows, it faces increasing competition from Amazon, which is also expanding its quick-commerce service, Amazon Now. During a recent visit to India, CEO Andy Jassy announced that Amazon Now has become the company’s fastest-growing business in the region, with orders doubling every quarter since its launch. Amazon plans to extend the service to over 300 cities and establish more than 1,000 micro-fulfillment centers to enhance its product delivery capabilities.

The quick-commerce sector is becoming increasingly competitive, with both Flipkart and Amazon striving to meet consumer expectations for rapid delivery. As noted by Meena, the shift towards instant delivery is reshaping consumer behavior, making it difficult for e-commerce platforms to revert to scheduled deliveries. “Can you go back to scheduled delivery now in grocery? No,” he remarked. “You will not go back.”

As Flipkart continues to narrow the gap with its competitors, the dynamics of the quick-commerce market in India are evolving, with significant implications for consumer shopping habits and the strategies of major e-commerce players. For further details, visit TechCrunch.