Flipkart Invests Heavily in Quick Commerce and Food Delivery

Walmart-owned Indian e-commerce giant Flipkart has embarked on an extensive and costly expansion into the quick commerce and food delivery sectors. This move represents a significant shift for a company once recognized for pioneering innovations in India's online retail landscape.

The company is now entering the quick commerce space, a vertical already dominated by competitors such as Blinkit, Zepto, and Swiggy Instamart, who have established markets for delivering products within minutes. According to industry insiders, Flipkart is reportedly spending approximately 300 million rupees (US$31 million) per month on its quick commerce unit, Flipkart Minutes.

Flipkart's CEO, Kalyan Krishnamurthy, is dedicating roughly half of his time to overseeing the development of the quick commerce vertical, highlighting the company's strategic focus and urgency to catch up with rivals in these fast-growing, albeit economically challenging, markets.

In addition to quick commerce, Flipkart is also experimenting with food delivery through its Eat In service. The company aims to compete on "original restaurant pricing" to attract consumers. These new ventures come at a time when Flipkart's reputation as an industry innovator has reportedly waned, with the company losing ground in both value commerce and fast-delivery segments.