New Delhi, Feb 19: Flipkart has begun delivering goods in parts of Bengaluru in 45 minutes, cutting its rapid delivery service time from 90 minutes. According to a business insider, the country’s top eCommerce platform wants to expand the 45-minute grocery delivery service known as Flipkart Quick to new cities next month.
The news comes at a time when companies like Blinkit, Zepto, Swiggy’s Instamart, and RIL-backed Dunzo are competing to deliver a variety of products in 15-20 minutes. Flipkart’s new service reflects the firm’s belief that 10-20 minute delivery is not the best customer model for the long term.
On January 4, Flipkart group CEO Kalyan Krishnamurthy commented that they would look at a more sustainable organization that provides delivery in 30-45 minutes with high pricing and selection. Rather than forcing a customer’s need that does not exist in the market, that is how they look at the convenience industry. He stated that the corporation wants to focus on a model that is long-term and provides high value and variety.
Dark stores are operated by quick commerce startups such as Swiggy’s Instamart and Zepto to permit grocery delivery in 15-20 minutes. These dark stores would normally feature 1,000-3,000 stock-keeping units (SKUs) per store. According to the source stated above, Flipkart will have a larger selection because it takes longer to deliver.
The corporation is not altering its 90-minute delivery methodology, but rather “optimizing the stages” to shorten delivery times. Flipkart Quick, which began as a 90-minute delivery service, is now available in 14 cities, with plans to expand to over 200 by 2022.
Under the broader grocery sector, Flipkart will also try to build its fresh vegetable and fruit business. Bengaluru and Hyderabad are the only cities where the service is currently available.
According to a Bernstein Research analysis, India is outpacing other global countries in terms of rapid commerce adoption. Quick commerce penetration as a percentage of online groceries in the country is 13 percent, compared to 7% in China and 3% in Europe. Quick commerce caters to middle- and upper-income families in metropolitan cities who value convenience overpricing. However, players across the industry are currently burning cash with no prospect of profit.
