Tech news in 3 minutes
Walmart-backed Flipkart expands quick-commerce push as Amazon ramps up in India
Flipkart's quick-commerce service, Minutes, has built a network of 1,000 micro-fulfillment centers less than two years after launch, the Walmart-backed company announced Wednesday. The small, strategically located warehouses enable deliveries in minutes, positioning Flipkart in India's increasingly competitive quick-commerce market. Flipkart plans to expand the network to 1,500 centers by the end of 2026, which could make it India's second-largest quick-commerce network by center count, behind Blinkit's 2,243 centers, according to Jefferies. Rivals Zepto and Swiggy Instamart are also expanding, while Amazon is accelerating its Amazon Now service, currently in over 15 cities with more than 500 centers, targeting 100 cities and 1,000 centers. Flipkart Minutes launched in August 2024. Demand now extends beyond groceries to electronics, beauty, and personal care, said Kunal Gupta, head of the service. Orders have grown about 400% year-over-year, and customer retention increased 20%, though the figures are company-reported and unverified. The service covers over 130 cities and 8,000 postal codes, with growth surging over 4,000% in smaller cities after entering 90 new ones. Cities like Patna, Guwahati, and Siliguri are maturing faster than expected; Lucknow is a top performer despite incomplete coverage. Customers use Minutes alongside Flipkart's main platform, not as a replacement, driving more frequent purchases. Average order values for fruits and vegetables rose 30% year-over-year. Flipkart plans to open 75–100 centers per month and expand further. Amazon similarly sees 70% of new Prime members from smaller markets and targets doubling its Prime base from 2023 by end of 2025. Everyday essentials now account for one in two units shipped on Amazon.in. India already has over 5,500 dark stores, expected to reach 7,500 by 2030, as companies turn quick commerce into a broader shopping platform. Gupta said Flipkart will not slow down after 1,000 stores and is "going all in."