Flipkart, the prominent e-commerce giant backed by Walmart, is gearing up to launch its quick commerce service in India’s major metropolitan areas within a few weeks. This move marks Flipkart’s strategic expansion into a rapidly growing market segment, competing directly with established players like Swiggy Instamart, Zepto, and Zomato’s Blinkit.
Hemant Badri, Senior Vice President overseeing supply chain, customer experience, and recommerce business at Flipkart Group, revealed in a recent interview the company’s imminent plans. “It’ll be a few weeks from now; we’ll start in a few large cities and progress as we move forward,” he stated, highlighting Flipkart’s intention to leverage its strengths in product variety, deep consumer insights, and extensive platform reach.
Quick commerce, characterized by its swift delivery of a wide array of products including staples, snacks, fresh produce, and now extending to home appliances, has resonated particularly well with urban consumers. Analysts from Jefferies noted in a report that urban users are driving substantial average order values ranging from ₹450-600, encompassing diverse categories from electronics to festive products.
Acknowledging the competitive landscape, Badri emphasized Flipkart’s commitment to differentiate itself in this crowded market. “We don’t want to be one more me-too in this space, and we will leverage all our strengths from supply chain capabilities to our deep understanding of consumer demand and market trends,” he affirmed.
The decision to enter quick commerce comes amidst significant growth in the sector, which saw a 77% year-on-year increase in 2023, reaching a gross merchandise value (GMV) of $2.8 billion, according to Redseer. Currently, quick commerce constitutes approximately 5% of India’s e-commerce market, driven by the convenience and extensive product availability offered by platforms like Zepto, Blinkit, Dunzo, and Swiggy Instamart.
While Badri refrained from disclosing specific investment figures, he highlighted Flipkart’s robust supply chain infrastructure as a key advantage. “We have built the supply chain, we are also riding on the existing supply chain,” he stated, underscoring Flipkart’s readiness to scale operations swiftly.
The imminent entry of Flipkart into the quick commerce fray is expected to intensify competition, triggering a new phase of innovation and service enhancements among existing players. With its vast resources and established customer base, Flipkart aims to carve out a distinct niche in quick commerce, promising a compelling value proposition for urban Indian consumers.
