Flipkart accelerates quick commerce push to challenge rivals

Flipkart’s service, branded as "Minutes," currently operates 1,000 warehouses and aims to reach 1,500 locations within months. Kunal Gupta, head of the service, noted that 70% of their expansion targets smaller cities, where consumers demonstrate a higher average order value. This shift is particularly evident in regions like Bihar, where the company is betting on value-conscious shoppers to fuel growth. While competitors like Blinkit handle 3 million orders daily and Swiggy processes 1.25 million, Flipkart trails with 820,000. However, Flipkart currently commands the highest average order value in the sector at 700 rupees, or approximately $7.39.

Analysts remain cautious about the company’s ability to displace established players. Satish Meena, founder of Datum Intelligence, pointed out that Blinkit maintains a stronghold among high-income households that prioritize convenience over price. Furthermore, the broader industry faces regulatory headwinds, as the Indian government recently mandated that companies cease advertising 10-minute delivery guarantees due to rider safety concerns. Despite these challenges and its status as a late entrant, Flipkart reports a fivefold increase in orders over the past year, with sales volume in smaller cities outperforming urban centers by a significant margin.