E-commerce platform Flipkart is looking to expand into the quick commerce sector according to Entrackr. According to their sources, Flipkart is planning to introduce 10-15 minute deliveries in cities like Bengaluru, Delhi (NCR) and Hyderabad in two months, putting it in competition, with delivery apps like Blinkit, Swiggy Instamart, and Zepto who have already expanded its catalogue to capture the quick commerce sector boom.
“Over the past few months, we have made several investments to enhance our delivery capabilities, including adding same-day delivery in 20 cities. This covers mobiles, essential items, electronics, home appliances, fashion, books and lifestyle products.” – Flipkart spokesperson said to Entrackr.
The e-commerce giant said it is trying to satisfy customers with more such features, which can add “value, selection and speed” to online shopping experiences. This move should be seen in the backdrop of recent reports suggesting that the quick commerce sector will grow at a 10-15X rate by 2025, eating up a major portion of the e-commerce market.
Flipkart adapting to the changing dynamics of e-commerce
Earlier in 2020, Flipkart entered the hyperlocal delivery services sector by launching a separate vertical called Flipkart Quick for instant grocery deliveries from nearby stores which was later expanded to include medicines and other consumer goods. The 90-minute delivery service, was a response, to the surge in consumer demand for app-based delivery during the lockdown. The service first went live in Bengaluru and expanded to other Indian cities. Reportedly, the company had ambitions to expand into 200 cities. However, the service was scaled down to two cities only. In a statement given to Inc 42, a Flipkart spokesperson said the e-commerce company has realigned its priorities to focus on its next-day grocery delivery platform Flipkart Supermart.
Recent reports also indicate that Flipkart is planning, to acquire cash-strapped quick commerce app Dunzo. However, the principal shareholder of Dunzo, Reliance Retail hasn’t accepted Flipkart’s proposal yet. The Mukesh Ambani-owned company purchased a 25.8 stake in Dunzo for $200 million in 2022. The Flipkart-Dunzo deal is complicated as Dunzo has several IP relationships with Reliance Retail which is preventing Flipkart from taking charge of it. The e-commerce company isn’t sure which services it can take over.
Flipkart’s new features, including the launch of UPI services in association with Axis Bank, have pitched it in direct competition against other UPI service providers like Google Pay and Phonepe, having 83% share of the market, dominating the quick commerce sector payment options. These new developments could be attributed to the boost in funding as reported by the Economic Times, that Flipkart’s marketplace arm Flipkart Internet received a cash infusion of about ₹ 924 crore ($111 million) from its related entities based in Singapore earlier this year. The Walmart-owned e-commerce company is also raising $1 billion with its parent company, which is injecting $600 million, making it the first fundraiser for Flipkart since 2021.
Also Read:
- Will Zepto’s Experimental Membership Program Overcome The Hurdles Faced By Zomato Gold?
- Video: How E-Commerce TDS Will Apply To Entities On ONDC Marketplace
- Earnings Call: Zomato’s Monthly Transacting Users Dropped Because Of Zomato Gold
STAY ON TOP OF TECH NEWS: Our daily newsletter with the top story of the day from MediaNama, delivered to your inbox before 9 AM. Click here to sign up today!
