Walmart-backed Flipkart expands quick-commerce push as Amazon ramps up in India

In a move signaling the intense competition in India's e-commerce landscape, Flipkart, backed by Walmart, announced a significant milestone in its quick-commerce initiative. The company revealed that its Minutes service has established a network of 1,000 micro-fulfillment centers within just two years of its launch. This expansion comes as Amazon also ramps up its fast-delivery service in the region. Flipkart aims to increase its network to 1,500 micro-fulfillment centers by the end of 2026, solidifying its position in a rapidly growing sector where competitors like Blinkit, Zepto, and Swiggy Instamart are also vying to enhance their infrastructure and customer base. Research from Jefferies suggests that, based on current store counts and future expansion plans, Flipkart could soon become the second-largest quick-commerce network in India, trailing only Blinkit, which operates 2,243 centers. India has emerged as one of the fastest-growing markets for quick commerce, with companies striving to deliver a wide array of products—from groceries to electronics—within minutes. While Blinkit currently leads the market, Flipkart, Zepto, Swiggy Instamart, and Amazon are heavily investing to capture more customers and expand their reach. The competition has intensified recently, particularly as Amazon accelerates its Amazon Now service, which is currently operational in over 15 cities with more than 500 micro-fulfillment centers. Amazon plans to extend its operations to 100 cities and increase its centers to over 1,000 while diversifying its offerings to include apparel and home goods. Kunal Gupta, head of Flipkart Minutes, noted a shift in consumer behavior, revealing that demand is increasingly coming from categories like electronics and personal care rather than just groceries. Orders on the platform have surged by approximately 400% year over year, and customer retention has risen by 20%. Gupta highlighted the evolution of shopping habits among Indian consumers, stating, "What began as a way to fulfill everyday essentials has evolved into a fundamentally new shopping habit for millions of Indians. Customers are not just ordering more; they are ordering differently." Flipkart has successfully expanded its Minutes service to over 130 cities and 8,000 postal codes, with significant growth seen in smaller cities. The company reported a staggering 4,000% growth in these markets, helped by the addition of 90 new cities. The trend of increased demand outside major metropolitan areas is also noted by Amazon, which revealed that 70% of its new Prime members come from smaller markets. Amazon aims to double its Prime membership by the end of the year, while everyday essentials now account for half of all shipments on its platform. Gupta indicated that Flipkart's Minutes service complements its main e-commerce platform, leading to more frequent purchases and an expansion into fresh produce and daily essentials. Average order values for fruits and vegetables have reportedly increased by 30% year over year. Looking ahead, Flipkart plans to continue rapid expansion, opening between 75 and 100 micro-fulfillment centers each month. This aggressive growth strategy underscores India's role as a testing ground for the future of e-commerce, with predictions indicating a rise in dark stores from 5,500 to approximately 7,500 by 2030 as companies further penetrate smaller markets and broaden their product ranges. Gupta affirmed, "We will continue to expand rapidly and will not slow down after 1,000 stores; we are going all in."