Zomato shares were down on Tuesday after reports suggested Flipkart is launching a number of dark stores, intensifying competition in the quick-commerce segment.
What Happened: Flipkart is planning to launch 100 dark stores across top cities ahead of its Big Billions Day sale, the Economic Times reported, citing sources.
Dark stores are small warehouses used to store the products to be delivered.
The company is reportedly planning to expand more and capture market share in the fast delivery segment, which includes non-grocery segments. By this move, the company will take on Zepto, Zomato's Blinkit and Swiggy Instamart in the quick-commerce space.
See Also: Namma Yatri Bags Around ₹92 Cr In Pre-Series A Funding Round From Google, Bloom Ventures
Flipkart will reportedly launch Flipkart Minutes with the delivery of vegetables, fruits, grocery and electronics.
Google reportedly invested around $350 million (around ₹2925 crore) in Flipkart in a funding round in May.
This news comes after Zomato's plans to invest ₹300 crore in Blinkit to prepare itself for the battle in quick commerce. The food delivery company had said in May that it plans to reach 1,000 Blinkit stores by the end of FY25. The quick commerce arm reported a revenue of nearly ₹770 crore and broke even at the EBIT level, which came in at ₹2 crore in the March quarter.
Price Action: Shares of Zomato were down 2.24% to ₹224.01 on Tuesday morning.
Read Next: LIC, FIIs Raise Stake in This Defence Stock, SBI Life Cuts Shareholding in June Quarter
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.