India's quick commerce startups face tough competition as Walmart and Amazon tighten their grip

India's quick commerce startups face tough competition as Walmart and Amazon tighten their grip

India's quick commerce sector is surging, with over 6,000 dark stores now operational. Flipkart aims to double its 800 stores by 2026, targeting growth beyond major cities.

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India's quick commerce market is experiencing significant growth, with demand for services more than doubling for certain players. Currently, over 6,000 dark stores are operational, contributing to an increasingly competitive landscape. Flipkart, which made its entry into this sector through Flipkart Minutes in August 2024, has recently expanded to over 800 dark stores and aims to double this number by the end of 2026, according to UBS.

Despite launching later than competitors like Blinkit and Swiggy, Flipkart is focusing on extending its reach beyond major urban centers. Currently, around 25–30% of its quick commerce orders originate from smaller towns, highlighting a shift in consumer behavior. Meanwhile, Blinkit, the market leader, operates more than 2,200 dark stores and plans to grow to 3,000 by 2027, primarily focusing on its top cities.

As competition intensifies, companies are reassessing their strategies amidst rising operational costs. Despite Flipkart's growth in smaller towns, the majority of demand still stems from larger cities, where population density allows for efficient deliveries and optimal use of dark stores. This trend is crucial as profitability in the sector remains a challenge.

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