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Flipkart investing in infrastructure for quick commerce

Flipkart investing in infrastructure for quick commerce
Flipkart investing in infrastructure for quick commerce

Flipkart is giving its quick-commerce a face-lift in India, which could lead to faster deliveries due to investment in its infrastructure. Entrackr claims three sources confirmed the plan details, including 10-15-minute delivery in at least a dozen sites, before the end of May. 

It’s allegedly building up a “chain of dark stores” in several cities in Bengaluru and Hyderabad, Entrackr quotes a source who claims to be close to the planning. 

This comes when the quick-commerce scene notices positive upscale and new business initiatives that could spark competition. Experts expect quick-commerce will rise in India and chip away at the online sales market over the next few years. 

According to the latest Redseer report (2022), India’s total addressable market for quick-commerce is worth about $45 billion. 

Flipkart’s plans: according to inside sources

A Flipkart spokesperson has reportedly exclusively confirmed to Entrackr that they are “working towards delivering a wider range of products with speed.” The person also confirmed that changes have been made over the last few months to “enhance our delivery capacity.” 

They included same-day delivery to 20 cities in just the last few months. The focus is not only on speedy deliveries but also on “value.” While staying ahead of what customers want is crucial, their needs change over time.

During the COVID-19 pandemic, quick-commerce gained massive attraction, but many of these instant delivery services closed down when the world opened up a bit more after the lockdowns. 

The Economic Times reports that quick-commerce firm Zepto Pass now uses a subscription program, which has already seen a 30% increase in customer expenditure. While Zepto keeps the subscription affordable, the benefits outweigh the customers who have to pay for the subscription. Zepto offers free deliveries and 20% off on grocery items. 

Management structure at Flipkart

Flipkart’s so-called facelift comes at a time when its co-founder Binny Bansal left the company just a few weeks back. Tech Crunch reports that Bansal opened a new cross-border e-commerce startup called OppDoor. Although OppDoor started in December, Bansal resigned recently due to a “conflict of interest” cited by the company. 

Bansal sold his stake in Flipkart, which was acquired by Walmart in 2018. Tech Crunch reports that Bansal has no regrets; he stepped down “knowing the company is in capable hands.” 

Quick-commerce rising again?

According to MarkNtel Advisors, India’s quick-commerce market is expected to grow at a CAGR of around 67% up until 2028. But what about the rest of the world’s quick-commerce industry? 

Statista projects the quick-commerce market in Australia to generate a revenue of $15 billion this year. It’s further expected to grow at more than 7% in 2028. Despite concerns that the market is falling flat, the number of quick-commerce users is expected to reach over four million, according to early forecasts by Statista.  

For now, the number of quick-commerce users in Australia is estimated at just over 12%. According to the data firm, the Australian quick-commerce market is “thriving”. This has to do with customers continuously relying on convenience and efficiency for their changing needs. 

About the author

Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.

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