Flipkart Minutes Gains on Blinkit in Quick Commerce

Flipkart Minutes is making strides in the quick-commerce sector, with order values approaching those of market leader Blinkit. The integration of mobile and electronics has given Flipkart an upper hand regarding overall basket size, as noted by UBS. Excluding mobile devices, Flipkart Minutes’ net order value is approximately Rs 500-530, which is slightly below Blinkit’s average net order value of Rs 518 for Q1 FY27. However, when mobile phones are included, the order value from Minutes exceeds that of Blinkit, showcasing Flipkart’s established dominance in the mobile and electronics segment.

The Advantage of Increased Basket Size

The larger basket size may provide Minutes with a competitive advantage as it develops its quick-commerce operations. While originally showing a more significant blend of mobile orders, the electronics and mobile categories have grown to play a vital role in its total portfolio over the past year. Flipkart’s established expertise and existing relationships with sellers in the mobile and electronics sectors have allowed Minutes to stand out from other quick-commerce platforms.

Expansion into New Categories

Besides focusing on its existing strengths, the company is enhancing Minutes’ offerings by adding fresh produce, beauty products, personal care items, and other necessities. Minutes has successfully launched over 1,000 dark stores in approximately 120-130 cities across India. The nationwide network averages between 800 and 1,000 orders per store daily, with more established stores capable of achieving 1,200 to 1,500 orders within five to six months of operation.

Advertising Revenue and Market Position

The advertising revenue generated by Minutes is largely on par with other top quick-commerce platforms, according to insights from UBS. Although gross margins are improving, they still lag behind Blinkit’s figures. However, city-specific economic factors are anticipated to enhance as markets develop. The degree of maturity of stores and cities will be essential in determining Minutes’ margin trajectory.

Competitive Landscape and Future Prospects

With order values approaching those of Blinkit, advertising revenue aligning closely with industry peers, and a more significant overall basket size when mobile orders are factored in, Minutes’ diverse category mix may continue to be a key differentiator as Flipkart broadens its footprint in quick commerce. Meanwhile, Blinkit maintains its leadership in the quick-commerce market, boasting a 38% share of tracked monthly active users in July, marking a 31 basis point increase month-on-month and a rise of 375 basis points year-on-year. During the same month, Blinkit’s monthly active users surged by 57% year-over-year, while Zepto exhibited a growth rate of 15-16%. Instamart’s standalone application captured a 9.5% share of monthly active users.