Walmart-owned ecommerce giant Flipkart is reportedly planning to limit expansion of its quick commerce unit, Flipkart Minutes, to the top six to eight cities to reduce cash burn.
“More than 90% of the quick commerce volumes are generated from the top eight cities and a bulk of this comes from Delhi NCR, Mumbai and Bengaluru where Flipkart is going deeper with Minutes,” a source told ET.
Flipkart Minutes, which competes with Eternal-owned Blinkit, Swiggy Instamart, Zepto, BigBasket’s BB Now and Amazon Now, is currently present in 14 cities and runs a network of more than 300 dark stores, or mini warehouses.
The intent is to scale this up to around 500-550 by October, the ET report said.
Inc42 reached out to the company and there has been no response yet.
With this move, Flipkart is now taking a more careful approach to expansion like Swiggy, while Eternal continues to aggressively expand regardless of short-term profits.
(The story will be updated soon)
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