“They (Flipkart) are on monitor to cross round 300 by March finish. The over 500-store goal signifies the agency’s plan to be prepared earlier than its flagship sale which generally happens throughout October-November,” an individual conscious of the plans mentioned.
Darkish shops — in addition to their measurement and site — are key to the operations of fast supply platforms, to have the ability to preserve a variety of articles and ship them in 15-20 minutes on common.
Additionally Learn: Cash-rich quick commerce firms rush to grab dark store sites, personnel amid rapid growth
Flipkart, in keeping with folks conscious of its plans, has gained market share for fast supply in its house turf of Bengaluru whereas increasing into high-value order segments like electronics, home equipment and smartphones — an space Blinkit and Zepto are beginning to goal with new model partnerships itemizing their merchandise on the platforms.
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Swiggy Instamart took over two years to hit 700 dark stores that it achieved in December 2024. Whereas Zepto topped the 900-mark this January, as reported by ET, Blinkit has greater than 1,000 dark stores.
“In current weeks, it (Minutes) has expanded in pin codes throughout Mumbai, Kolkata, Pune and different cities,” one other individual conscious of the plans mentioned.
ET first reported final yr about Flipkart’s plan to hit 100 dark stores as a part of its early plans for Minutes.
A spokesperson for Flipkart didn’t reply to an e mail in search of remark.
Continuous competitors
A report from Bofa Securities dated February 6 mentioned it expects competitors to proceed to extend in fast commerce for the subsequent three to 6 months.
“It’s because most platforms are taking a land-grab method and look to enter newer areas. The upper competitors is resulting in (1) increased advertising spending; (2) a rise in platform-led reductions (extra for unlisted platforms vs listed); (3) shopper supply charges taking place; (4) increased rental charges for darkish shops and more cash spent on hiring workers working in darkish shops and for supply companions,” the report mentioned.
As per the report, Minutes has a wider assortment given the energy of the core Flipkart ecommerce app and is current in a lot smaller cities when in comparison with the highest three platforms.
“App surveys point out vary and value factors of electronics like telephones engaging versus friends (possible led by Flipkart’s core sourcing energy in electronics). Additionally pricing of those units on Minutes is much like that on the principle Flipkart app,” the report mentioned.
Different fast commerce platforms are additionally making heavy investments. On Wednesday, Swiggy reported a 40% jump in loss at Rs 799 crore within the December quarter, boosted by the efficiency at Instamart. However increased investments in fast start harm its margin and the agency expects the margin profile to be comparable within the present quarter given the extraordinary rivalry taking part in out within the sector.
In the meantime, Flipkart, based mostly on its plans, might emerge because the fourth largest participant within the section. BigBasket’s BB Now’s one other platform. Amazon, as reported by ET, has begun testing a 15-minute supply service with staffers in three localities in Bengaluru.
Primarily based on earnings information and public bulletins, Blinkit stays the market chief with annualised product sales run fee of $3.7 billion, in contrast with $3 billion for Zepto and $1.8 billion for Swiggy Instamart.
The Bofa report mentioned the fast commerce sector is estimated to develop from $21 billion now to $31 billion by FY27 underneath a bull case state of affairs, accounting for two.4% of the nation’s retail market, up from 1.7% at present.
Additionally Learn: Dark store count may touch 5,500 by FY26 as competition heats up in quick commerce: HSBC report