Flipkart to Launch Standalone App for Quick-Commerce Service Amid Industry Challenges
Flipkart plans standalone app for Minutes amid q-commerce slowdown
Business StandardImage: Business Standard
Flipkart is set to launch a standalone app for its quick-commerce service, Flipkart Minutes, ahead of its Big Billion Days sale. This move follows industry trends and aims to enhance visibility in a competitive market, where Blinkit currently leads with 2.6 million daily orders.
- 01Flipkart Minutes will become a standalone app, launching in the next quarter.
- 02The quick-commerce market in India is becoming saturated, impacting profitability.
- 03Blinkit leads the market with 2.6 million daily orders, followed by Zepto and JioMart.
- 04Analysts suggest that standalone apps can improve visibility but face uneven adoption.
- 05The next growth phase for quick-commerce lies in tier-1 and -2 cities, despite challenges.
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Flipkart is preparing to launch a standalone app for its quick-commerce service, Flipkart Minutes, in response to market trends and competition. The app is expected to pilot in July 2024, with a broader rollout planned before the end of the year, coinciding with Flipkart's Big Billion Days sale. This decision follows Swiggy's introduction of a standalone Instamart app as quick-commerce services evolve in India. Currently, Blinkit leads the quick-commerce market with 2.6 million daily orders, while Zepto and JioMart follow closely with 1.5-1.6 million and 1.6 million orders, respectively. Despite rapid growth, the sector faces saturation in metro areas, leading to concerns about profitability. A report from US-based research firm Bernstein indicates that the quick-commerce industry, which has expanded to include over 6,000 dark stores serving approximately 230 million people, is now experiencing diminishing returns as competition intensifies. Analysts suggest that consolidating dark-store networks and increasing average order values through non-grocery items could help improve margins. Future growth opportunities lie in tier-1 and -2 cities, although these markets present unique challenges.
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The launch of the standalone app could enhance service visibility for consumers, potentially leading to quicker deliveries and improved product offerings.
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