Walmart-backed Flipkart has significantly bolstered its quick-commerce operations in India, announcing it has established a network of over 1,000 micro-fulfilment centres for its 'Minutes' service. These strategically located small warehouses are designed to facilitate rapid deliveries, a critical component in India's increasingly competitive e-commerce landscape. This expansion comes less than two years after the service's inception and signals a determined push to capture a larger share of the fast-growing market.
The Indian quick-commerce sector has become a key battleground for major players, with Flipkart's rival, Amazon, also accelerating its expansion plans. Flipkart intends to further extend its network to 1,500 micro-fulfilment centres by the close of 2026. This ambitious build-out could position Flipkart as India's second-largest quick-commerce network by centre count, trailing only Blinkit, which currently operates 2,243 such facilities. Other significant players like Zepto and Swiggy Instamart are also investing heavily in their infrastructure.
India stands out as one of the world's fastest-growing quick-commerce markets, where companies are vying to deliver a wide array of products, from groceries and beauty items to electronics, within minutes. The intensifying competition has seen Amazon ramp up its 'Amazon Now' service, which presently operates over 500 micro-fulfilment centres across more than 15 cities. Amazon's strategy involves expanding this service to 100 cities with over 1,000 centres, broadening its product range beyond groceries to include apparel, electronics, and home goods.
Notably, shopping patterns on Flipkart Minutes are evolving. Initially focused on everyday essentials, demand is increasingly shifting towards categories such as electronics, beauty, and personal care products. Kunal Gupta, head of Flipkart Minutes, highlighted a 400% increase in orders year-on-year and a 20% rise in customer retention. This trend suggests a fundamental change in consumer habits, with quick commerce becoming a more integrated part of daily shopping beyond just urgent grocery needs.
Both Flipkart and Amazon are observing substantial growth originating from smaller cities, moving beyond India's largest metropolitan areas. Flipkart reported over 4,000% growth from these markets year-on-year, aided by expansion into 90 new cities. Amazon similarly noted that 70% of its new Prime members are from smaller markets, indicating a widespread adoption of online shopping across diverse regions of India. This decentralised growth underscores the vast potential and evolving nature of the Indian e-commerce market.