Key Takeaways
- Flipkart Minutes has grown to 1,000+ fulfillment centers across 130 cities, adding roughly 100 stores monthly
- Amazon Now plans to expand from 500 dark stores in 15 cities to 300 cities, far exceeding its earlier 100-city target
- Both challengers are targeting tier 2 and 3 cities where average order values exceed metro areas
Amazon and Flipkart are pouring resources into quick commerce, racing to close the gap with market leaders Blinkit, Swiggy Instamart, and Zepto. Both e-commerce giants have announced aggressive expansion plans that could reshape India's 10-minute delivery market over the next 12 months.
Flipkart Minutes, the Walmart-backed company's quick commerce arm, now operates more than 1,000 fulfillment centers across 130 cities. That's roughly five times its scale from the same period last year, according to Kunal Gupta, senior vice president and head of Flipkart Minutes. The company is adding about 100 stores monthly and aims to reach 1,500 stores across 180+ cities.
Amazon announced Tuesday it will extend Amazon Now to 300 cities. The company currently runs about 500 dark stores across 15 cities including Bengaluru, Delhi-NCR, Mumbai, Pune, Hyderabad, Amritsar, and Kochi. This target tripled from the 100-city goal Amazon outlined just two months ago.
Why are Amazon and Flipkart targeting smaller cities?
The top three quick commerce players have focused on densifying their presence in metros. Amazon and Flipkart are taking a different approach: going wide before going deep.
Of the 130 cities where Flipkart Minutes operates, about 90 are in tier 2 and tier 3 markets. The strategy appears data-driven. "The average order value in tier 2 and 3 cities is larger than metros," Gupta told ET. Customers in smaller cities, once they adopt quick commerce, tend to buy more per order than their counterparts in Delhi or Mumbai.
Amazon is following a similar playbook. Its 300-city target represents a bet that quick commerce demand exists well beyond the metros where Blinkit and Zepto have concentrated their networks.
How big is the gap with Blinkit, Instamart, and Zepto?
The incumbents remain far ahead. Data from Kotak Institutional Equities shows Blinkit, Swiggy Instamart, and Zepto ended FY26 with 4,525 dark stores combined. Their gross merchandise value hit Rs 92,000 crore, nearly double the previous year. Together, these three platforms processed almost two billion orders during the fiscal year.
Amazon's growth trajectory offers some context for the chase. Orders on Amazon Now have grown 25% month on month, doubling every quarter since launch. That's fast, but from a smaller base.
“We were slow out of the gate, but we were not sitting idle... Once we decided to get there, we got there quickly.”
— Samir Kumar, Amazon India's country manager
What's Amazon investing in India?
Amazon CEO Andy Jassy is in India this week, meeting senior business leaders in Mumbai and scheduled to meet Prime Minister Narendra Modi in New Delhi. The timing signals how seriously Amazon views the Indian market.
Amazon announced a Rs 2,800 crore investment in India to strengthen infrastructure and operations. This is part of a broader $35 billion commitment through 2030. Last week, the company opened 100 large fulfillment centers in Bengaluru, Chennai, Delhi-NCR, Hyderabad, and Mumbai.
These fulfillment centers serve Amazon's broader e-commerce operations, not just quick commerce. But they create the logistics backbone that supports faster delivery everywhere.
Can the late entrants catch up?
Both Amazon and Flipkart have structural advantages the quick commerce startups lack. They have existing customer bases, established logistics networks, and deeper pockets. Walmart, Flipkart's parent, and Amazon can sustain losses longer than venture-backed competitors if the battle turns into a war of attrition.
Flipkart Minutes claims aggressive expansion ahead. "It will be an aggressive expansion from here on," Gupta said. At the current pace of 3-4 new stores daily, the company could have over 2,000 locations within a year.
The incumbents won't sit still. Blinkit, Instamart, and Zepto have first-mover advantages in customer habits and brand recognition for quick commerce. But the market is growing fast enough that multiple players can expand simultaneously. The question isn't whether Amazon and Flipkart will gain share. It's how much.
Logicity's Take
Amazon and Flipkart's tier 2 and 3 city focus isn't just about avoiding a direct fight with Blinkit in metros. It's about shaping consumer behavior before the incumbents arrive. The company that defines what quick commerce means in Jaipur or Lucknow gains an advantage that's hard to dislodge. Higher average order values in smaller cities also suggest better unit economics, which matters when the entire sector is still losing money.
Frequently Asked Questions
How many dark stores does Amazon Now have in India?
Amazon Now currently operates about 500 dark stores across 15 cities and plans to expand to 300 cities.
How many fulfillment centers does Flipkart Minutes operate?
Flipkart Minutes operates over 1,000 fulfillment centers across 130 cities as of June, up from about 750 in March.
Who are the top 3 quick commerce players in India?
Blinkit (owned by Eternal), Swiggy Instamart, and Zepto lead India's quick commerce market with 4,525 combined dark stores and Rs 92,000 crore in GMV for FY26.
Why are Amazon and Flipkart focusing on tier 2 and 3 cities?
Average order values in smaller cities exceed those in metros, and the incumbents haven't yet densified their presence in these markets.
Need Help Implementing This?
If you're building logistics or quick commerce operations in India and need strategic guidance on market entry, dark store network planning, or competitive positioning, reach out to Logicity's consulting network at consulting@logicity.in.
Source: Tech-Economic Times / ET
Manaal Khan
Tech & Innovation Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
