Flipkart Minutes, the rapid delivery segment of the e-commerce giant Flipkart, has ambitious plans to establish 800 dark stores by the close of 2025, as shared by the company’s group CEO, Kalyan Krishnamurthy, during Walmart’s recent Investment Community Meeting.
Rapid Expansion of Flipkart Minutes
Launched just nine months ago, Flipkart Minutes started with a modest count of 100 stores and has impressively scaled up to nearly 300 locations. This swift growth reflects the increasing demand for quick commerce solutions in India, even as companies navigate the challenges of high operational costs.
- Current Store Count: 300
- Target Store Count: 800 by 2025
Competitive Landscape in Quick Commerce
The quick commerce sector is experiencing fierce competition. Zomato’s Blinkit reported having about 1,007 stores by the end of December 2023, while Swiggy Instamart operates around 705 stores. Both companies have aggressive plans to expand:
- Swiggy Instamart aims for 1,000 stores by March.
- Blinkit is targeting 2,000 stores by December.
BigBasket, another major player owned by Tata, is also venturing into this space with a goal of 800 dark stores by March. Meanwhile, Zepto, currently managing approximately 750 stores, plans to increase its footprint to 1,200 shortly, focusing on financial stability ahead of an anticipated IPO.
Flipkart’s Late Yet Strategic Entry
Although Flipkart was late to enter the quick commerce arena, launching Minutes from Bangalore in August 2022, it has quickly expanded its reach to major urban centers. The company is leveraging competitive pricing strategies, offering significant discounts to capture market share.
According to BofA Global Research, Flipkart’s pricing on electronics through Minutes is particularly appealing, thanks to the company’s robust sourcing capabilities. Analysts believe that Flipkart’s parent company, Walmart, provides valuable insights from its experiences in China, where it operates a similar quick commerce model.
Global Insights and Logistics Expertise
In China, Walmart runs Cloud Depots, which function like dark stores, delivering products within 15 to 60 minutes in major cities. The company is also testing this model in Mexico, boasting a vast network of around 4,000 stores and aiming to reduce delivery times to 15-30 minutes.
An analyst noted, “With Flipkart’s understanding of logistics and backend operations, it stands to gain a competitive edge soon.”
Understanding Consumer Preferences
Krishnamurthy emphasized that in India’s top 30-40 cities, consumers prioritize speed and convenience. In contrast, for the 300 million users in smaller cities, the focus is on product variety and value.
To enhance customer engagement, Flipkart is integrating AI technologies to personalize shopping experiences. Krishnamurthy highlighted the shift in consumer preferences, noting that younger audiences favor video content over static images.
“We’re leveraging AI to transform our catalogs into videos, providing sellers with cost-effective tools to create engaging content,” he stated.
Future Plans: IPO and Beyond
Looking ahead, Flipkart is preparing for a potential IPO, having shifted its operational base back to India. The company is likely to file its Draft Red Herring Prospectus (DRHP) in the upcoming months, with plans to go public by 2026-27.
As Flipkart Minutes continues to carve out its niche in the quick commerce market, its strategic growth initiatives and innovative approaches promise to shape the future of e-commerce in India.
