In a strategic move to optimize operations and reduce cash burn, Walmart-backed Flipkart is reportedly planning to limit the expansion of its quick commerce arm, Flipkart Minutes, to India’s top six to eight cities. The decision comes amid increasing competition and cost pressures in the rapidly evolving quick commerce segment.
According to a report by The Economic Times, over 90% of quick commerce orders are generated from the top eight metropolitan areas, with the highest demand coming from Delhi NCR, Mumbai, and Bengaluru. These urban hubs will now become the core focus for Flipkart’s quick delivery operations, allowing the company to deepen its presence and improve unit economics in regions where customer demand is highest.
Flipkart Minutes, which was launched to compete with industry heavyweights like Blinkit (owned by Zomato’s parent Eternal), Swiggy Instamart, Zepto, BB Now (BigBasket), and Amazon Now, is currently active in 14 cities. The service runs a network of over 300 dark stores — small fulfillment centers or mini warehouses designed to enable ultra-fast delivery within 10–30 minutes.
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The shift in strategy underscores the growing realization among quick commerce players that aggressive expansion may not be sustainable without strong demand and profitability in newer markets. Instead of spreading resources thin across Tier 2 and Tier 3 cities, Flipkart is choosing to consolidate its footprint in the most profitable urban markets.
Industry experts note that the quick commerce space, while showing strong growth, operates on thin margins. High logistics costs, frequent discounting, and the need for hyperlocal inventory make profitability a major challenge. By concentrating on high-volume zones, Flipkart aims to increase efficiency, improve service quality, and reduce operational costs.
Moreover, Flipkart’s renewed focus on key metro cities aligns with a broader trend in the quick commerce industry where companies are trimming their operational footprints to ensure long-term viability. Competitors such as Blinkit and Zepto have also reportedly refined their city-wise strategies to balance customer satisfaction and financial sustainability.
With India’s quick commerce market projected to reach $5 billion by 2025, companies are under pressure to scale quickly but wisely. For Flipkart, this means going deeper into areas with established demand rather than casting a wider but less profitable net.
As competition continues to heat up, Flipkart’s strategy of focusing on metros may give it a competitive edge in customer retention and faster delivery turnaround, especially in densely populated areas with higher basket sizes and repeat purchase behavior.
Conclusion
Flipkart’s decision to scale back its quick commerce expansion and focus on India’s top eight cities marks a pivotal moment in the evolution of the sector. By aligning its growth with customer demand and operational efficiency, the company is positioning Flipkart Minutes for more sustainable success in an increasingly competitive landscape.
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