Key facts
- Walmart-backed Flipkart has established 1,000 micro-fulfillment centers for its quick-commerce service, Minutes.
- Flipkart aims to expand its network to 1,500 micro-fulfillment centers by the end of 2026.
- Amazon is also expanding its fast-delivery business in India, operating over 500 micro-fulfillment centers and planning further growth.
- India's quick-commerce market is experiencing intense competition, with companies expanding infrastructure and customer reach.
- Flipkart Minutes has seen a 400% increase in orders and a 20% rise in customer retention year-over-year.
- Flipkart Minutes is expanding beyond groceries into categories like electronics, beauty, and personal care products.
Walmart-backed Flipkart is significantly expanding its quick-commerce service, Minutes, by building out its network of micro-fulfillment centers. The company announced it has established 1,000 such centers and plans to reach 1,500 by the end of 2026, intensifying its competition with Amazon and other players in India's rapidly growing fast-delivery market.
Amazon is also accelerating its own fast-delivery business, Amazon Now, which currently operates in over 15 cities with more than 500 micro-fulfillment centers. The e-commerce giant intends to expand this service to 100 cities with over 1,000 centers, broadening its product selection beyond groceries to include apparel, electronics, and home goods.
Flipkart Minutes has experienced substantial growth, with orders increasing by approximately 400% year-over-year and customer retention rising by 20%. The service has expanded to over 130 cities and 8,000 postal codes, with notable growth occurring in smaller cities. Demand is increasingly shifting towards categories like electronics, beauty, and personal care, rather than solely groceries.
Kunal Gupta, head of Flipkart Minutes, stated that customers are using the service for more frequent purchases and are ordering different types of products, including fresh produce and daily essentials. He noted that newly launched markets are maturing faster than anticipated, citing cities like Patna, Guwahati, and Siliguri as examples.
Amazon also highlighted its focus on smaller markets, reporting that 70% of new Prime members come from these areas and that it is on track to double its Prime membership base this year. Everyday essentials now constitute half of all units shipped on Amazon.in, with Amazon Now contributing to increased shopping frequency.
The aggressive expansion by both Flipkart and Amazon underscores India's role as a key market for the evolution of e-commerce, transforming quick commerce from a grocery-focused service into a broader shopping platform. Industry analysts anticipate the number of dark stores in India to grow from over 5,500 to approximately 7,500 by 2030.