Walmart-backed PhonePe is preparing to enter the quick commerce market through its e-commerce platform, Pincode, marking its third foray into online retail, according to a media report.

In April 2024, Pincode exited non-food categories on the Open Network for Digital Commerce (ONDC) and now offers only food delivery and unreserved ticket bookings.

As reported by The Economic Times, Pincode has pivoted fully to the quick commerce model, launching 15-minute delivery services in select areas of Bengaluru, Mumbai, New Delhi, Pune, Hyderabad, and Varanasi.

The company aims to expand its reach to 25% of these cities in the coming weeks, with a full-scale rollout planned between April and June 2025.

Following Flipkart, PhonePe becomes the second company within the group to explore instant delivery services. The sector has seen significant growth, with Blinkit, Zepto, and Instamart dominating the market, while Flipkart, BigBasket, and Amazon are rapidly expanding.

Additionally, a surge in 10-15-minute food deliveries has attracted players like Swiggy, Zomato, Blinkit, Zepto, Ola, and Magicpin.

Pincode adopts a hybrid delivery model, leveraging PhonePe’s in-house logistics team alongside partnerships with local kirana stores and modern retail outlets, avoiding the dark store strategy commonly used by competitors. This approach is designed to strengthen last-mile connectivity and improve delivery efficiency.

With quick commerce gaining momentum, PhonePe’s move signals intensified competition in the instant delivery landscape. The move is set to intensify competition, challenging established players and driving further innovation in instant delivery services.