According to a report by The Economic Times, Flipkart has already begun onboarding local pharmacies in metro areas to supply medicines through its platform. The company plans to leverage its robust last-mile delivery network to ensure fast service. Crucially, these partnerships will comply with Indian regulations that prevent foreign-backed e-commerce companies from owning inventory. Only registered, licensed chemists will be allowed to participate in this program, ensuring regulatory compliance.
Flipkart Targets an Underserved Market
The launch of Flipkart Minutes in the medicine delivery sector represents a strategic move into an underserved category. While competitors in the pharmaceutical space offer delivery times ranging from one hour to several days, Flipkart aims to outpace them with ultra-fast 10-minute deliveries.
A source quoted in the report revealed that Flipkart’s entry into the medicine market is part of its larger goal to build Flipkart Minutes into a fully integrated quick commerce platform. By partnering with licensed pharmacies, Flipkart can focus on perfecting logistics while tapping into a high-demand, high-margin product category.
“The differentiator in this space could be offering discounts, especially for patients requiring long-term or expensive treatments,” said Devangshu Dutta, CEO of consulting firm Third Eyesight, in the Economic Times report.
Expanding Flipkart’s Quick Commerce and Online Pharmacy Presence
This new initiative is part of Flipkart’s broader strategy to deepen its presence in both the quick commerce and online pharmacy sectors, which are currently led by established players like Reliance Retail’s Netmeds, Tata 1mg, and Apollo Pharmacy. Flipkart entered the health space in 2021 with its acquisition of a majority stake in SastaSundar Marketplace, which offers an online pharmacy and healthcare platform.
Flipkart’s push into the quick commerce space comes as it faces tough competition from players like Zomato’s Blinkit, Swiggy’s Instamart, BigBasket (Tata Group), and Zepto. While Amazon has yet to introduce a dedicated quick commerce service, it remains a strong competitor with Amazon Fresh in the grocery delivery market.
Flipkart Minutes: Expanding Across Key Indian Cities
Flipkart Minutes, which is currently operational in Bengaluru, Delhi-NCR, and Mumbai, plans to expand its services to 8-10 major cities, including Kolkata, Pune, Hyderabad, and Chennai. The company is also positioning itself as a leader in the grocery delivery market, offering free delivery and a broader selection than its rivals, thanks to its partnerships with local stores and marketplace sellers.
Quick Commerce Market Set to Boom
The Indian quick commerce market is projected to see rapid growth, with a recent report by Grant Thornton Bharat predicting the sector will nearly triple in size, from $3.34 billion in 2023 to $9.94 billion by 2029. The report highlights a 76% year-on-year growth in 2023-24, underscoring the immense opportunities for companies like Flipkart to capitalize on this booming market.
Key Takeaways:
- Flipkart Minutes is set to launch a 10-minute medicine delivery service in India, positioning the company as a leader in the quick commerce space.
- Flipkart has already started partnering with licensed pharmacies to ensure compliance with Indian regulations.
- The new service taps into an underserved market, with competitors offering slower delivery times ranging from one hour to several days.
- Flipkart is expanding its quick commerce presence across major cities and is well-positioned to grow in the rapidly expanding market.
- The quick commerce market in India is projected to nearly triple, creating significant growth opportunities for Flipkart.
