India’s Flipkart gives hyperlocal delivery service another try

Flipkart on Tuesday launched a hyperlocal service in suburbs of Bangalore, four years after the e-commerce group abruptly concluded its previous foray into this category.

The e-commerce group, owned by Walmart, said Flipkart Quick leverages the company’s supply chain infrastructure and a new location mapping technology framework to deliver more than 2,000 products across grocery, perishables, smartphones, electronics accessories, and stationary items within 90 minutes to customers.

When a customer places an order, the items are sourced from local neighborhood stores, warehouses and retail chains. Flipkart Quick — initially operational in Whitefield, Panathur, HSR Layout, BTM Layout, Banashankari, RK Puram and Indiranagar among other suburbs of Bangalore — allows customers to book a convenient two-hour slot between 6am to midnight for delivery.

Flipkart, which is working with a range of partner firms, is levying a delivery charge that starts at 29 Indian rupees (39 cents) on servicing these orders, it said.

The launch of Quick stands to provide Flipkart an opportunity to reach a new set of users, especially those who otherwise see no reason to buy online, offer more timely deliveries and also become a headache for some existing startups such as Dunzo that already operate in a similar space. It also marks Flipkart’s foray into servicing fresh fruits, vegetables, meats, and milk orders.

“This is a great model for India as households of all sizes are already used to their neighbourhood Kirana stores. In fact, Indian families are so comfortable with what we call the ‘hyperlocal context’, that there is a tendency to develop deep, familial ties with vendors, shopkeepers and service providers – now with the convenience of e-commerce,” said Sandeep Karwa, a VP at Flipkart, in a statement.

“While we start with our dark store (no-walkin) model, wherein we enable sellers to store inventory close to the consumer; this model has the potential of encouraging local entrepreneurship and enabling new business strategies and partnerships. Today, with Flipkart Quick – our Hyperlocal capability, we have the potential to bring together the whole network of neighbourhood Kirana stores onto our platform with just a click,” he added.

This isn’t the first time Flipkart has explored the hyperlocal delivery category. In late 2015, Flipkart launched Nearby to deliver perishables, grocery, wellbeing, and household items within 60 minutes. But the company abruptly discontinued Nearby reportedly because of poor demand and thin margin.

Flipkart did not reference Nearby today, but talked about the efforts it has made to build Quick and the opportunities it sees in the market. Flipkart said the company plans to expand Quick hyperlocal delivery service outside of Bangalore in a few months.

For Quick, Flipkart said it is also moving away from the traditional model of using zip code system to identify delivery location and instead using a latitude and longitude approach. This model enables the company to “not only narrow down the location” but also be “more precise” and deliver more efficiently.

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