In just a few weeks, Flipkart will enter the q-commerce market and face Zepto, Blinkit, Instamart

“It will take a few weeks; we will start in a few big cities and expand as we go,” Hemant Badri, senior vice president, head of supply chain, customer service and recommerce business at Flipkart Group, said in an interview.

Adding that Flipkart will leverage its strengths – wide range of choices, knowledge of consumer shopping habits and presence of a large platform – Badri said the customer proposition for fast trading is “very strong”, explaining the reasons why the company is investing in this segment .

The company will offer a wide range of fast-trade goods including home appliances, apart from focusing on key categories such as essentials, snacks, fruits and vegetables.

“The convenience offered by fast trading has had a positive impact on urban users, whose average order value is high ₹450-600 and the product basket even includes electronics, stationery, gifts, festive products and more,” Jefferies analysts said in a March report. “Brands are also delighted given the rapid growth of the channel.”

Badri declined to provide figures on the investment behind the company’s entry into the high-speed trading market.

“We have built a supply chain, we are also building on the existing supply chain,” said Badri, who was given responsibility for Flipkart’s fast commerce business in the June quarter. “We don’t want to be just another ‘me’ in this space and we will leverage all of our strengths, from the supply chain to customers, to our ability to understand demand and trends.”

Competitive landscape

Flipkart’s entry will up the ante in the fast-trading market, which grew 77% year-on-year in 2023 to reach gross merchandise value (GMV) of $2.8 billion, according to consultancy Redseer; it is now estimated to constitute 5% of Indian e-commerce.

This market surge is being driven by companies like Zepto, Zomato-backed Blinkit, Dunzo and Swiggy Instamart. Last year, orders for these players increased due to greater convenience and the availability of a wide range of goods.

For example, in the financial year 2023-24, Blinkit’s gross order value was ₹12,469 crore and the adjusted revenue was ₹Last quarter, parent company Zomato reported Rs 2,302 crore in March quarter profits.

Preparing for a “fast” jump

This is Flipkart’s next foray into grocery delivery, though fast commerce is now more than just grocery shopping. For example, it had earlier launched Flipkart Quick – delivering only fruits and vegetables within 25-20 minutes. However, later the scale of this activity was limited.

In January, Flipkart announced same-day delivery for products across multiple categories in 20 cities in India. Customers receive products before 12:00 if they place an order by 1:00 p.m. The initiative will scale over the next few months to serve more customers across the country, the company said in announcing the rollout.

Flipkart’s venture into fast commerce will further enhance the company’s ability to serve consumers quickly, which is a key demand for Indian customers today. Commenting on how the company will deliver goods at short notice, Badri said the retailer would consider “every possible” go-to-market strategy.

“We have large logistics centers and a logistics network. So we are very strong in them. We have also developed our own knowledge of running dark stores, so we have enough confidence that we will build the right network – it’s about supply chain solutions and meeting the needs of our customers. We use the existing network, and part of it is under construction,” he added.

On whether Flipkart will support orders through small mom and pop stores, Badri said: “We want to democratize commerce, so we are exploring all options.”

The Flipkart Group operates Flipkart, Myntra, Flipkart Wholesale, Flipkart Health+ and Cleartrip in India.

Although fast trading was initially based on top-up purchases, it now offers a wide range of products and goes far beyond the grocery store. According to a report by Jefferies, the value of the grocery market, the main category of fast commerce, is estimated at $600 billion (both offline and online).