Bengaluru: Flipkart is rapidly strengthening its position in India’s competitive quick-commerce market, with its Minutes platform now narrowing the gap with market leader Blinkit on order value, according to UBS research. It has been able to open more than 1,000 dark stores in around 120-130 cities in the past few months and is just a further indication of the rapid pace at which Flipkart is expanding its instant-delivery network.
According to UBS channel checks, Flipkart Minutes' average net order value is now close to Blinkit's levels. Minutes is now net order value of around ₹500-₹530 without mobile phones, compared to approximately ₹518 for Blinkit in Q1 FY27. However, when mobile phone purchases are taken into account, Minutes' average net order value is higher than Blinkit's and this is one of the key reasons why Flipkart has a large basket size.
The much higher order value is also intimately associated with Flipkart's knowledge of mobile and electronics with its experience in the mobile and electronics categories. As opposed to other traditional quick-commerce players who focused on groceries and basics like basic essentials, Flipkart came to the segment with years of experience in online electronics and mobile phone sales. Minutes’ existing seller relationships and customer base provide Minutes with a way to sell even more valuable products as well as groceries and other everyday items for sale with those things as well.
Minutes Crosses 1,000 Dark Stores
The dark store network has become one of the most important elements of Flipkart Minutes’ growth strategy. The platform now operates more than 1,000 dark stores across around 120-130 cities. These centres function as local fulfilment centres, so orders can be received and sent to customers from locations close to them.
For the entire network, Minutes stores are taking in 800-1,000 orders per store per day, according to UBS. Stores that are mature after around 5 to 6 months of operations will perform much better, with about 1,200-1,500 orders per day. The difference indicates that store maturity and increasing customer adoption can play an important role in improving the economics of the business.
The scale-up is significant from Flipkart Minutes' earlier footprint. The service launched in 2024 and has grown quickly as Flipkart competes with well-established quick-commerce companies like Blinkit, Zepto and Swiggy Instamart.
Mobile Phones Give Flipkart an Edge
One of Minutes’ biggest advantages is the ability to combine the convenience of fast commerce with Flipkart’s proven electronics expertise. Mobile phones and other electronic products can significantly increase the value of individual baskets compared to orders that are mainly groceries and household essentials.
UBS estimates that Minutes' order value without mobile phones is slightly below Blinkit's figure. But including mobile purchases pushes Minutes ahead. This is an indication that Flipkart's category expertise could remain an important competitive advantage as the company expands its quick-commerce business.
The company is also extending Minutes beyond electronics. Fresh products, beauty and personal-care items and other immediate-use categories are coming up in the platform’s repertoire. The strategy allows Flipkart to employ Minutes not only as a grocery delivery service but also as the gateway into its wider digital commerce ecosystem.
Metro Cities Still Drive Demand
Despite the rapid expansion into smaller markets, metropolitan cities are still an important source of Minutes' business. UBS estimates that 60-65% of Minutes' demand comes from metro markets, while North India contributes a little less than a third of total demand. Meanwhile, South India is growing strongly, with smaller markets, especially cities in eastern India such as Kolkata, becoming more important.
The geographical expansion is also indicative of changing dynamics in India's quick-commerce industry. Initially focused on major urban centres, instant-delivery companies are increasingly looking beyond metros as smartphone adoption, digital payments and online shopping are becoming more prevalent in Tier-II and Tier-III markets.
Flipkart has an extra advantage in these locations: it already has a huge customer base outside India’s biggest cities. So the company can introduce Minutes to existing Flipkart shoppers without having to build customer awareness entirely from scratch.
Blinkit Still Leads in User Reach
While Minutes is making significant progress on order value and infrastructure, Blinkit continues to hold a strong position in customer reach. Recent UBS-related data indicate Blinkit accounts for about 38% of tracked monthly active users in July, with monthly active users growing very fast year-on-year.
This means Flipkart still has a lot of ground to cover before Minutes can be seen as a market leader. But the narrowing order value gap proves that the platform is a serious competitor instead of just a new entrant.
Flipkart will have to turn rapid network expansion into sustainable store-level economics. Minutes' gross margins are improving but still below Blinkit's levels, UBS said. As stores get older and order volumes increase, city-level economics will be better.
What Lies Ahead for Flipkart Minutes?
The latest numbers indicate that Flipkart is taking the quick-commerce battle seriously. More than 1,000 dark stores, strong daily order volumes and average order value approaching Blinkit's level give Minutes an increasingly solid foundation for future growth.
The ability of the company to marry groceries and everyday essentials with the more important things like phones and electronics to create an instant connection between the two could be very important. At the same time, expanding to smaller cities might help Flipkart open new sources of demand.
The rise of Minutes means that competition will likely get more intense within India’s fast-commerce sector. Blinkit, Zepto, Swiggy Instamart and other players are already investing heavily in fulfilment infrastructure, assortment and customer acquisition.
And with Flipkart going all-round Minutes, the next phase of competition will focus not only on delivery speed and order volumes, but also basket size, customer retention, margins and store-level profitability. For now, UBS’ findings indicate that Flipkart Minutes is quickly closing the gap with established quick-commerce leaders and has emerged as a major force in India’s fast-growing instant-delivery market.
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