Pincode is piloting a quick delivery service in parts of Bengaluru, Delhi NCR, Mumbai, Pune, Hyderabad and Varanasi under which it delivers groceries and other products in 10-20 minutes
Unlike most quick commerce players, Pincode doesn’t have a dark store model. It has a marketplace model, under which it brings together neighbourhood kirana stores and buyers
With the entry in the quick commerce space, PhonePe-owned Pincode will compete with Blinkit, Swiggy Instamart, Zepto, Flipkart Minutes, among others
Amid the rising competition in the quick commerce space, PhonePe’s Pincode has become the latest entrant in the segment. The ecommerce app is piloting a quick delivery service in parts of Bengaluru, Delhi NCR, Mumbai, Pune, Hyderabad and Varanasi under which it delivers groceries and other products in 10-20 minutes, sources told Inc42.
The products will be delivered by Pincode’s delivery executives, and delivery partners of logistics companies such as Shadowfax and Loadshare.
Unlike most quick commerce players, Pincode doesn’t have a dark store model. Instead, it has a marketplace model, under which it brings together neighbourhood kirana stores and buyers on its platform.
“We figured delivery from a neighborhood kirana store or a supermarket within 20 minutes can be done without setting up dark stores and that is what we are doing,” one of the sources said.
This model eliminates the need for costly inventory storage or warehouse management, and Pincode believes that this asset-light approach can benefit both retailers and customers.
In the pilot stage, customers can get groceries, personal care products, sports equipment, among others in 10-20 minutes.
Inc42 has reached out to PhonePe
seeking additional information about the pilot. The story will be updated on receiving a response.
PhonePe initially launched Pincode app in Bengaluru in April 2023 to sell groceries, apparel, food and technology products on the Open Network for Digital Commerce (ONDC) platform. Back then, Pincode was primarily a buyer-side app. However, since last quarter, the startup has moved away from the ONDC network as it began developing its own marketplace. Earlier this year, Pincode exited several categories like fashion, grocery and electronics from the network.
Pincode is now focusing more on the seller-side experience on the app.
With the entry into the quick commerce space, it would take on the likes of Blinkit, Swiggy Instamart, Zepto, and Big Basket.
The development comes at a time when major players in the quick commerce space are firming up their expansion plans. To fuel this expansion, Zepto has raised over $1.3 Bn across three funding rounds in 2024 so far.
Swiggy, which recently made its public market debut, plans to use a part of the capital raised through its initial public offering (IPO) to expand the dark store network of Instamart. Meanwhile, Zomato opened its INR 8,500 Cr qualified institutional placement on Monday (November 26) . It will use INR 2,137 Cr from this to set up Blinkit’s dark stores and warehouses.
It must be highlighted that Pincode’s quick commerce delivery model is similar to what Dunzo’s model was, before it decided to set up its dark stores.
In the quick commerce space, Pincode will also compete with Flipkart Minutes. PhonePe demerged from Flipkart last year.
