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| Walmart-Owned Flipkart Enters India's Quick Commerce Market with 10-Minute Deliveries: A Game Changer in E-Commerce Image credit: Hindustan Times |
Flipkart Minutes: A New Quick Commerce Service
India's leading e-commerce firm, Flipkart, has launched Flipkart Minutes, a quick commerce service that promises delivery within 10 to 15 minutes. Currently rolling out in parts of Bengaluru, the service offers a wide range of items, from groceries to smartphones, with free delivery on orders priced at Rs 100 (approximately $1.20).
Resilient Growth in India's Quick Commerce Sector
The quick commerce sector in India is witnessing remarkable growth and resilience. Urban consumers have embraced the convenience of 10-minute grocery deliveries, leading to positive signs for companies like Zomato-owned Blinkit, StepStone-backed Zepto, and SoftBank-backed Swiggy Instamart. This trend has attracted significant interest from analysts and investors.
Competition with Amazon
Flipkart, which leads the e-commerce market in India, aims to use quick commerce to attract Amazon's top customers in urban areas. While Amazon focuses on same-day delivery for Prime members and questions the quality of fast delivery services in its marketing, Flipkart sees an opportunity to gain an edge in the competitive landscape.
Amazon's Market Strategy and Potential Acquisition
Amazon has shown little interest in quick commerce in India, instead prioritizing same-day delivery for its Prime members. However, the company is reportedly in talks to acquire a stake in Swiggy, which has confidentially filed for an initial public offering. This move could strengthen Amazon's position in the market.
Growing Popularity of Quick Commerce Platforms
A recent analysis by TechCrunch found that many of Amazon India's bestselling items are also available on quick commerce platforms. This overlap suggests that Amazon could lose some business and traffic to these faster delivery services as they continue to gain popularity among consumers.
Flipkart's Strategic Move into Quick Commerce
Flipkart's entry into the quick commerce market marks a strategic move to capitalize on the growing demand for rapid deliveries in India. The company is leveraging small warehouses or "dark stores" located near residential and business areas to facilitate quick deliveries, a model that has successfully expanded to numerous categories, including fashion and electronics.
Analyst Insights on Quick Commerce Valuation
Goldman Sachs estimates that Blinkit, India's leading quick commerce player, is already worth more than its parent firm's food delivery operations. Zomato's stock recently reached an all-time high market cap of $30 billion, following a quarterly profit report of about $30 million, highlighting the lucrative potential of the quick commerce sector.
Conclusion: Flipkart's Ambitious Expansion
As Flipkart continues to roll out Flipkart Minutes, it positions itself to compete more aggressively with Amazon and other quick commerce players in India. This expansion into quick commerce is a strategic effort to capture a larger share of the urban market and meet the growing demand for rapid, convenient deliveries.
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