Amazon and Flipkart expand quick commerce services across India, intensifying market competition
Amazon and Flipkart are accelerating their quick commerce operations in India, expanding the services Amazon Now and Flipkart Minutes to more cities. This move is expected to heighten competition in a market currently led by Zomato, Swiggy, Zepto, and Big Basket.
Amazon announced plans to scale Amazon Now to customers in over 300 cities across the country. Meanwhile, Flipkart Minutes, launched in August 2024, has reached 1,000 micro-fulfilment centres across 130 cities in under two years, according to the company.
Amazon Now has become the fastest-growing e-commerce business unit in Amazon India's history, with orders doubling every quarter since launch. Samir Kumar, Country Manager of Amazon India, noted that Prime members who use Amazon Now triple their shopping frequency.
Flipkart Minutes has grown fivefold since its network expansion, driven by Gen Z consumers and strong growth in Tier 2 and Tier 3 cities. Hemant Badri, Senior Vice President at Flipkart, called the milestone significant, reflecting evolving consumer adoption of quick commerce.
Over the past year, Flipkart's quick commerce service expanded into more than 90 new cities, with Tier 2 and Tier 3 markets recording 42 times growth compared to the previous year. Kunal Gupta, Senior Vice President at Flipkart, highlighted changes in customer behaviour: average order value for fruits and vegetables increased by 30%, repeat purchases rose, and demand extended beyond groceries into electronics, beauty, wellness, and lifestyle categories.
Gen Z now constitutes over 40% of Flipkart Minutes' customer base, purchasing daily essentials and new categories with high frequency. Both companies are capitalizing on the booming quick commerce segment, which continues to grow rapidly across India.
