The reports state that the company has a presence in around 14 cities and operates through a network of over 300 so-called dark stores or mini warehouses
Flipkart is eyeing to adopt a cautious approach to its quick commerce business as it may restrict the expansion of its rapid commerce unit, Flipkart Minutes, to the top six to eight cities to reduce burn, as per the media reports.
Currently in direct competition with Swiggy Instamart, Zepto, BigBasket’s BB Now and Blinkit, the company has presence in around 14 cities and operates through a network of over 300 so-called dark stores or mini warehouses, the reports added.
The company eyes scaling this up to around 500 to 550 stores by October. The reports highlighted that with around 90 per cent of the quick commerce volumes coming from the top cities like Delhi-NCR, Mumbai and Bengaluru, the company is aiming to boost its presence in these cities.
Earlier, the company’s board cleared the proposal of the company to move its domicile to India from Singapore. This development comes ahead of the planned initial public offering (IPO) next year. A report by Bain & Company and Flipkart highlighted that the stress in consumption is evident in e-retail growth in 2024 being 10 to 12 per cent, compared to historical growth rates of over 20 per cent.
The report also mentioned that quick commerce is projected to grow at over 40 per cent annually through 2030, driven by expansion across categories, geographies, and customer segments. While quick commerce began with grocery, 15 to 20 per cent of its gross merchandise (GMV) now comes from categories such as general merchandise, mobile phones, electronics, and apparel.
