Flipkart Minutes Races to 550 Dark Stores Before Big Billion Days

Since its Walmart acquisition last August Walmart-operated e-commerce has rolled out 120-150 dark stores in quick commerce operations. Sources report that Flipkart is set to create more than 300 stores before March 2025 while building its position against Blinkit and Zepto and Swiggy Instamart.

"They (Flipkart) are on track to cross around 300 by March end. The over 500-store target indicates the firm's plan to be ready before its flagship sale which typically occurs during October-November," as per sources.

Ultra-fast deliveries depend on Dark stores as micro-fulfillment centers to provide consumers with various products within 15-20 minutes response time.

Competing in a Crowded Market

In the city of Bengaluru where Flipkart operates as its core market it has gained substantial ground in premium segments including electronics appliances and smartphones which both Blinkit and Zepto must match by collaborating with similar brands.

Flipkart faces intense competition from various existing market players as it grows its business rapidly:

• Blinkit operates over 1,000 dark stores.

• Zepto surpassed 900 stores in January.

Swiggy Instamart needs two years to establish 700 stores across India until December 2024

BofA Securities predicts a sharp rise in competition between quick commerce companies during the next six months based on expected market share battles through intensified expansion and extensive promotional spending.

"This is because most platforms are taking a land-grab approach and look to enter newer areas. The higher competition is leading to higher marketing spending; an increase in platform-led discounts (more for unlisted platforms vs listed);consumer delivery fees going down; higher rental fees for dark stores and more money spent on hiring employees working in dark stores and for delivery partners," the report stated.

Flipkart’s Competitive Edge

The extensive parent platform ecosystem of Flipkart Minutes enables the service to present a wider product offering and consumer electronics at reasonable prices.

"App surveys indicate range and price points of electronics like phones attractive versus peers (likely led by Flipkart's core sourcing strength in electronics). Also, pricing of these devices on Minutes is similar to that on the main Flipkart app," the report noted.

Major corporate giants are demonstrating their continued investment interest in this business sector. Swiggy demonstrated a substantial increase in losses as the operations of Instamart expanded resulting in ₹799 crore in December quarter losses. The 15-minute delivery service of Amazon currently exists in selected areas of the Bengaluru city.

Flipkart Minutes is demonstrating growth potential which could elevate it to the fourth position among quick commerce operators including Blinkit Zepto and Swiggy Instamart. Quick commerce markets show an ongoing expansion potential which also benefits Flipkart. 

Research by BofA projects that quick commerce will grow from its present $21 billion value to $31 billion by FY27 to obtain 2.4% of India's total retail market sector while increasing from current 1.7%.

Flipkart is enlarging its dark store network while vying to acquire meaningful market segments during its annual big sale period.

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