Walmart-Backed Flipkart Accelerates Fast Delivery Expansion Amidst Amazon’s Growing Presence in India

With quick commerce emerging as a pivotal arena in India’s e-commerce landscape, Flipkart, supported by Walmart, announced on Wednesday that its Minutes service has established a network of 1,000 micro-fulfillment centers. These small, strategically placed warehouses are designed for rapid deliveries, marking a significant achievement within less than two years of its inception. Amazon is similarly pursuing this goal as it expands its fast-delivery services in India.

Flipkart’s objective is to grow this network to 1,500 micro-fulfillment centers by the conclusion of 2026, a swift expansion that aims to bolster its standing in India’s highly competitive quick-commerce market. Rivals such as Blinkit, Zepto, Swiggy Instamart, and Amazon are striving to enhance their infrastructure and customer base.

According to a recent report, Flipkart could soon secure the position of India’s second-largest quick-commerce network based on the number of micro-fulfillment centers, trailing behind Blinkit, which operates 2,243 centers. Competitors Zepto and Swiggy Instamart are also broadening their networks.

India has become one of the world’s fastest-growing quick-commerce markets, with businesses striving to establish networks that can deliver a wide array of products, including groceries, beauty items, and electronics within minutes. Blinkit remains the market leader, while Zepto, Swiggy Instamart, Flipkart, and Amazon invest significantly to enhance their reach and attract customers.

Competition has intensified recently as Amazon accelerates the launch of Amazon Now, which is currently functioning in more than 15 cities and operates over 500 micro-fulfillment centers. The company has ambitious plans to expand its services to 100 cities, increasing its micro-fulfillment centers to more than 1,000 while broadening its product categories to include apparel, electronics, and home goods.

This shift in consumer behavior is evident in the shopping patterns on Flipkart Minutes, which launched in August 2024. Demand has increasingly shifted towards categories such as electronics, beauty, and personal care instead of solely groceries. Kunal Gupta, head of Flipkart Minutes, reported that orders on the platform have surged by approximately 400% in the past year, while customer retention has increased by 20% year-over-year. These figures were provided by the company and have not been independently confirmed.

“What started as a platform for everyday essentials has transformed into a new shopping behavior for millions of Indians,” Gupta stated. “Customers are not only ordering more; their ordering habits are changing.”

Flipkart has now extended Minutes to over 130 cities and 8,000 postal codes, with notable growth emerging from smaller cities beyond the major metropolitan areas. These markets saw over 4,000% growth compared to the previous year, thanks in part to the entry into 90 new cities, according to the company.

The rapid growth trend is also reflected in the maturation rates of newly launched markets. Gupta pointed to cities like Patna, Guwahati, and Siliguri as examples where new stores are growing faster than anticipated, and noted Lucknow as a high-performing market for Flipkart Minutes, despite not covering the entire city yet.

Amazon, too, is focusing on demand outside of India’s largest cities. The company indicated that 70% of its new Prime members are from smaller markets and aims to double its Prime membership by the end of the year compared to 2023 levels. Now, everyday essentials constitute half of all units shipped on Amazon.in, with Amazon Now increasing shopping frequencies among customers.

Gupta mentioned that Flipkart customers are utilizing Minutes in conjunction with the main e-commerce platform, leading to more frequent purchases and expansion into categories such as fresh produce and daily essentials. The company reported a 30% year-over-year increase in average order values for fruits and vegetables.

Looking ahead, Flipkart intends to continue its monthly opening of 75 to 100 micro-fulfillment centers while exploring new cities across the country.

The swift expansion by both Flipkart and Amazon illustrates that India is a key testing ground for the next phase of e-commerce. Companies are eager to transition quick commerce from merely grocery delivery into a broader shopping platform. Current statistics show that India has over 5,500 dark stores, a number that analysts predict will increase to approximately 7,500 by 2030 as firms branch into smaller cities and diversify their product offerings.

“We will maintain our rapid expansion and will not slow down after reaching 1,000 stores. We are fully committed,” Gupta declared.