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Flipkart Accelerates Quick-Commerce Expansion Amid Amazon Competition

Flipkart Accelerates Quick-Commerce Expansion Amid Amazon Competition

Photo: TechCrunch

Quick answer

Flipkart expands its micro-fulfillment network for quick-commerce in India to 1,000 hubs, targeting 1,500 by 2026 to challenge Amazon and other rivals.

India’s quick-commerce market is experiencing explosive growth, and Flipkart—backed by Walmart—is rapidly scaling its infrastructure. The company has achieved a major milestone: a network of 1,000 micro-fulfillment centers strategically located to enable sub-30-minute deliveries. This milestone was reached in less than two years since launching Flipkart Minutes.

Flipkart plans to expand its micro-fulfillment network to 1,500 hubs by the end of 2026, strengthening its competitive edge against rivals like Blinkit, Zepto, Swiggy Instamart, and Amazon. According to Jefferies, Blinkit currently leads with 2,243 hubs, but Flipkart is poised to claim second place, overtaking Zepto and Swiggy Instamart.

Competition is intensifying, especially after Amazon ramped up its Amazon Now service. Currently available in over 15 Indian cities with 500+ micro-fulfillment centers, Amazon aims to expand to 100 cities, increase hubs to 1,000, and diversify its product range beyond groceries to include apparel, electronics, and home goods.

Launched in August 2024, Flipkart Minutes has seen remarkable growth: order volumes surged by 400% year-over-year, while customer retention rose by 20%. Kunal Gupta, head of the service, noted a shift in demand from groceries to electronics, cosmetics, and personal care. The service now covers over 130 cities and 8,000 postal codes, with significant growth in tier-2 cities like Patna, Guwahati, and Siliguri.

Industry experts predict continued expansion of India’s quick-commerce market. Bernstein estimates the number of dark stores (micro-fulfillment hubs) could grow from 5,500 to 7,500 by 2030 as companies penetrate new regions and expand product assortments.

Common questions

What is quick-commerce, and why is it important for India?
Quick-commerce is a rapid delivery model offering 10–30 minute order fulfillment. In India, this segment is booming due to rising demand for instant deliveries of groceries, electronics, and essentials, particularly in major and tier-2 cities.
Which companies lead India’s quick-commerce market?
Key players include Blinkit (owned by Zomato), Zepto, Swiggy Instamart, Flipkart Minutes, and Amazon Now. Blinkit leads in micro-fulfillment hubs, but Flipkart and Amazon are rapidly expanding their networks.
What products are most commonly ordered via quick-commerce?
Initially focused on groceries, demand now spans electronics, cosmetics, home goods, and fresh produce. Flipkart reports a 400% year-over-year surge in orders across these categories.
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Prepared by the V-Help editorial team from the primary source with a published date.

Published by: V-Help.ru news desk

Source: TechCrunch