In a bold move into the competitive quick commerce market, PhonePe’s Pincode platform is now piloting rapid delivery services in select areas, including Bengaluru, Delhi NCR, Mumbai, Pune, Hyderabad, and Varanasi. Reports by Inc42 indicate that the service guarantees delivery of groceries and other products within 10-20 minutes.
Pincode leverages its delivery partners, Shadowfax and Loadshare, to fulfill orders. Unlike conventional quick commerce models relying on dark stores, Pincode connects local kirana stores with customers, adopting an asset-light marketplace approach. This eliminates warehouse costs, benefiting both retailers and consumers. During the pilot, customers can order groceries, personal care items, and sports goods within the promised timeframe.
Evolution of the Pincode App
Launched in Bengaluru in April 2023, Pincode initially operated on the Open Network for Digital Commerce (ONDC) as a buyer-centric platform. It offered various products, including groceries and apparel. However, the app has since pivoted, exiting categories like fashion and electronics to develop its independent marketplace.
This strategic shift aligns with Pincode’s entry into the quick commerce space, positioning it as a competitor to players like Blinkit, Zepto, Swiggy Instamart, and BigBasket.
Competition Heats Up
The quick commerce sector has witnessed aggressive investments. Zepto raised over $1.3 billion in 2024, while Swiggy expanded Instamart using IPO funds. Similarly, Zomato allocated Rs. 2,137 crore for Blinkit’s infrastructure. Pincode’s model resembles Dunzo’s earlier marketplace strategy, offering an alternative to inventory-heavy dark store setups.
Also Read: Swiggy Shares Drop Nearly 6% on Second Day of Trading, Market Valuation Falls by Rs5,842 Crore
Amazon’s “Tez” and Reliance’s JioMart
Amazon is also set to launch its quick commerce service, code-named Tez, by early 2025. Meanwhile, Reliance’s JioMart pilots in Navi Mumbai and Bengaluru signal Mukesh Ambani’s quiet entry into this booming market, targeting key competitors.
As the quick commerce sector grows, projected to reach $7 billion by 2024, players like Pincode are shaking up traditional grocery delivery while challenging industry heavyweights.