PhonePe launched its Pincode app in Bengaluru in April 2023, initially as a buyer-centric platform on the Open Network for Digital Commerce (ONDC). It offered groceries, apparel, food, and technology products. However, in recent months, the platform has pivoted away from ONDC, shifting its focus to developing its own marketplace. Earlier this year, Pincode also exited several ONDC categories, including fashion, grocery, and electronics.

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The app now emphasizes enhancing the seller-side experience and has entered the quick commerce space, competing with established players such as Blinkit, Swiggy Instamart, Zepto, and Big Basket.

This move comes as the quick commerce sector sees aggressive expansion. Zepto has raised over USD 1.3 billion through three funding rounds in 2024, while Swiggy is using proceeds from its IPO to expand Instamart’s dark store network. Similarly, Zomato has earmarked Rs. 2,137 crore from its recent Rs. 8,500 crore qualified institutional placement to set up Blinkit’s dark stores and warehouses.

Pincode’s quick commerce delivery model bears similarities to Dunzo’s initial approach before it transitioned to the dark store model, offering a unique alternative to inventory-heavy strategies.

Amazon’s quick commerce service

Amazon India is gearing up to debut its quick commerce service, reportedly code-named Tez, as early as late December or early next year, according to a Reuters report. The move will mark Amazon’s entry into India’s rapidly expanding quick commerce market, currently led by players like Blinkit, Zepto, and Swiggy Instamart.

The quick commerce sector, focused on ultra-fast delivery of groceries and daily essentials, is anticipated to grow to a market size of approximately USD 7 billion by 2024.

Initially scheduled for a first-quarter 2025 launch, Amazon has expedited Tez’s rollout, sources revealed. The final launch date is likely to be determined during the company’s December review meeting, aligning with its annual Smbhav event.

Mukesh Ambani’s entry into quick commerce

Mukesh Ambani is reportedly setting his sights on competitors like Blinkit, Swiggy Instamart, and BigBasket as Reliance Retail makes a quiet entry into the quick commerce sector.

According to The Economic Times, Reliance has initiated pilot programs through JioMart in Navi Mumbai and Bengaluru, indicating its strategy to disrupt the rapidly growing delivery market. With a nationwide rollout in the pipeline, Reliance appears poised to take on the leading players in India’s flourishing quick commerce industry.

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