New Delhi: India’s quick commerce battle is intensifying as e-commerce giants Amazon and Flipkart accelerate investments in micro fulfilment centres and dark stores to challenge established players in the rapidly growing segment.
The latest expansion plans underscore the increasing importance of quick commerce in India’s retail landscape, where companies are racing to deliver groceries, electronics and lifestyle products within minutes.
Flipkart Minutes crosses 1,000 dark stores
Flipkart Minutes announced on Wednesday that it has crossed 1,000 micro fulfilment centres across more than 130 cities and 8,000 PIN codes, less than two years after its launch in August 2024.
The Walmart-owned company is reportedly on track to surpass 1,500 micro fulfilment centres in the coming months.
The company also claimed a five-fold increase in order volumes over the past year, driven largely by its expansion into tier II and tier III cities. According to the company, demand has expanded beyond groceries into categories such as electronics, beauty, wellness and lifestyle products.
Flipkart Minutes further reported a 42-fold increase in scale across smaller cities, adding more than 90 new cities to its network over the past year.
Amazon targets presence in 300 cities
Meanwhile, Amazon unveiled plans to expand its quick commerce service, Amazon Now, to more than 300 cities across India.
The company plans to support the expansion through a network of over 1,000 micro fulfilment centres and more than 100 urban fulfilment centres. Amazon currently operates more than 500 such facilities.
The expansion strategy was announced during Amazon Chief Executive Officer Andy Jassy’s visit to India, during which he met government officials, industry leaders and company employees.
Amazon had earlier announced a $300 million investment to strengthen its infrastructure and operations in India, with a portion of the funds earmarked for expanding its quick commerce business.
According to the company, Amazon Now has become its fastest-growing e-commerce business segment in India, with orders reportedly doubling every quarter since its launch and serving more than 50 million customers across over 15 cities.
Competition intensifies in quick commerce
The rapid expansion by Amazon and Flipkart comes as the quick commerce sector witnesses fierce competition from established players such as Blinkit, Zepto, Swiggy Instamart, BigBasket and JioMart.
Blinkit currently has the broadest dedicated quick commerce footprint with a presence in 243 cities and operates 2,243 dark stores. Swiggy Instamart and Zepto operate 1,143 and 1,139 dark stores, respectively, while BigBasket has expanded to more than 900 dark stores.
Amazon’s plan to enter 300 cities would give it the largest city footprint among dedicated quick commerce operators once the rollout is completed.
Dark stores emerge as critical infrastructure
Dark stores and micro fulfilment centres have become essential infrastructure for quick commerce companies as they allow inventory to be positioned closer to customers, enabling deliveries within minutes.
The expansion plans also highlight the growing focus on fulfilment density and geographical reach as companies seek to improve delivery speeds and customer retention.
Reliance-owned JioMart, meanwhile, has adopted a different strategy. According to the company, its quick commerce network comprises more than 3,100 stores across over 1,200 cities and 5,100 PIN codes by leveraging the existing network of Reliance Retail stores instead of relying solely on dedicated dark stores.
Market consolidation may lie ahead
Industry observers believe the presence of multiple large players in the quick commerce segment could eventually lead to consolidation, as sustaining aggressive expansion and high operational costs may prove challenging in the long run.
The competition has intensified further as quick commerce companies expand beyond groceries into categories such as electronics, personal care, beauty products and home essentials.
As Amazon and Flipkart rapidly scale their operations, the Indian quick commerce market appears poised for an even more competitive phase, with companies increasingly focusing on speed, convenience and wider geographical coverage to gain market share.
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