Flipkart Minutes Expands to Over 1,000 Dark Stores
Flipkart's quick commerce service, Minutes, now operates more than 1,000 dark stores across 120-130 cities, with an average network order volume of
Flipkart's quick commerce arm, Minutes, has scaled to over 1,000 dark stores across 120 to 130 cities. This data comes from a recent UBS research note on the sector. Stores operational for five to six months are handling 1,000 to 1,500 orders per day, though the network-wide average is lower, at 800 to 1,000 daily orders.
On a key performance metric, the average order value for Flipkart Minutes now closely rivals that of competitor Blinkit. Excluding mobile phones, Minutes' net order value stands at Rs 500-530, slightly below Blinkit's Rs 518. However, when mobile phones are included, Minutes' order value is higher. The UBS report attributes this advantage to Flipkart's established expertise and seller relationships in mobiles and electronics, built through its core e-commerce marketplace.
Order Value Comparison
The following table compares the average order values for Flipkart Minutes and Blinkit, based on figures from the UBS report:
| Platform | Order Value (Excluding Mobiles) | Order Value (Including Mobiles) |
|---|---|---|
| Flipkart Minutes | Rs 500-530 | Higher than Blinkit's |
| Blinkit | Rs 518 | Lower than Flipkart Minutes' |
Geographic Demand and Expansion
Metro markets generate 60 to 65 percent of Minutes' total demand. North India accounts for slightly under a third of the business, while South India is scaling up quickly. The platform has also seen strong traction in smaller markets, particularly Kolkata and other cities in eastern India.
Future expansion could be significant. Citing an industry expert, the report said Flipkart could add around 1,000 more dark stores by the middle of next year. This potential expansion might be timed with Flipkart's next Big Billion Days sale. The report cautions, however, that this growth depends on how quickly supporting warehouses and other backend infrastructure can be built.
Customer Retention and Profitability
The Minutes service is helping Flipkart win back customers. It is clawing back shoppers who had shifted some spending-particularly on categories like fresh produce and personal care-to standalone quick commerce apps. In cities where Minutes is available, 40 to 45 percent of Flipkart's core marketplace shoppers also use the quick commerce service.
On profitability, the picture is mixed. Gross margins on Minutes are improving but remain below Blinkit's levels. The cost per order has moved closer to the levels of Blinkit and Swiggy Instamart. Despite this progress, the report notes that Flipkart Minutes is still not as operationally efficient as Blinkit, according to the industry expert cited.
