Walmart-backed PhonePe is making its third foray into online retail by venturing into the quick commerce market through its e-commerce platform, Pincode. This new move, according to media reports, marks a significant pivot for the company, which had previously struggled with two other retail ventures.
PhonePe’s quick commerce initiative was initially launched in April last year when its Pincode app exited non-food categories on the Open Network for Digital Commerce (ONDC), focusing primarily on food delivery and unreserved ticket booking. However, the company has now fully embraced the quick commerce model, offering 15-minute delivery services in select areas across six major cities: Bengaluru, Mumbai, New Delhi, Pune, Hyderabad, and Varanasi.
The company aims to expand its coverage in these cities, planning to reach 25% market penetration in the coming weeks. A full-service rollout is expected between April and June 2025, as PhonePe accelerates its ambitions in the highly competitive instant delivery space.
This expansion follows Flipkart, its sister company under the Walmart group, which has already ventured into quick commerce. Along with Flipkart, PhonePe joins a growing list of companies aiming to capture a slice of the lucrative instant delivery market. Other major players include Zomato and Blinkit, both of which have also made significant moves in the space.
In recent months, quick commerce has seen an influx of both established giants and emerging startups. Companies like Blinkit, Zepto, and Instamart are already leading the market, while larger players such as Flipkart, BigBasket, and Amazon are increasing their presence. Additionally, food delivery services have followed suit with shorter 10-15 minute delivery times, with platforms like Swiggy, Zomato, Blinkit, and Magicpin all making their mark in the space.
As PhonePe joins this trend, it faces the challenge of competing with well-established brands in a market that is growing rapidly, but also becoming more crowded. With its planned expansion and growing focus on quick commerce, PhonePe’s Pincode is poised to become a significant player in the fast-moving retail landscape.
