Flipkart, India's largest e-commerce firm owned by Walmart, is diving headfirst into the burgeoning quick commerce market with the launch of Flipkart Minutes. The new service, currently being rolled out in parts of Bengaluru, promises deliveries of a wide range of products, from groceries to smartphones, within a mere 10 to 15 minutes.
Flipkart is offering free delivery on orders priced over Rs 100, further incentivising customers to embrace the convenience of instant gratification. This move positions Flipkart as a direct competitor to existing quick commerce players like Zomato-owned Blinkit, StepStone-backed Zepto, and SoftBank-backed Swiggy Instamart.
The quick commerce sector in India has demonstrated remarkable resilience and growth, defying the challenges faced by similar models in other markets. The convenience of 10-minute grocery deliveries has resonated strongly with urban Indian consumers, fueling optimism among investors and analysts.
Goldman Sachs, for instance, estimates that Blinkit's valuation already surpasses that of its parent company's core food delivery business. Zomato's recent stock surge, reaching a market cap of $30 billion, further underscores the market's confidence in the quick commerce model.
Flipkart's foray into quick commerce is seen as a strategic move to challenge Amazon's dominance among urban Indian consumers. While Flipkart leads the overall e-commerce market, Amazon has a stronger foothold in urban areas.
In contrast to Flipkart's aggressive approach, Amazon has remained hesitant to enter the quick commerce arena in India. Instead, the company has focused on bolstering its same-day delivery capabilities for Prime members and has even questioned the quality of products offered by "fast" delivery services in its marketing campaigns.
However, Amazon is reportedly in talks to acquire a stake in Swiggy, which recently filed for an initial public offering, suggesting a potential indirect entry into the quick commerce landscape.