Flipkart Minutes Could Add 1,000 Dark Stores By Mid-2027: UBS

Walmart-owned Indian e-commerce giant Flipkart's quick commerce platform, Minutes, could potentially add 1,000 more "dark stores" by mid-2027, according to a UBS report. These dark stores are fulfillment centers that do not make deliveries to customers but rather hold inventory for quick dispatch. The expansion of Minutes depends on the performance of individual markets and the development of supporting hubs and backend infrastructure.

If successful, the network would nearly double to around 2,000 stores, nearly matching the target set by Flipkart itself. Minutes currently operates in 130 cities with over 8,000 pin codes and averages 800-1,000 orders per day per store. It is being used to attract customers to Flipkart's ecosystem, especially in categories like fresh food, beauty, and personal care.

Minutes' net order value, excluding mobile phones, is around ₹500-₹530, close to Blinkit's average of ₹518 in Q1 FY27. The platform is expanding rapidly, particularly in non-metro cities where customers are more willing to accept longer delivery times. UBS believes Flipkart's existing ecommerce customer base and regional demand data will help identify markets where competitors have limited presence.

Minutes' advertising revenue is comparable to leading quick commerce platforms, but its gross margins are still below Blinkit's and operational efficiency is yet to match Blinkit's. Flipkart manages the dark stores itself but increasingly relies on partners and franchisees for a smaller portion of its network. The quick commerce space is getting increasingly competitive, with Amazon Now also planning to expand its fulfillment network to 300 cities by the end of 2026.