PhonePe‘s Pincode has entered the quick commerce space, piloting a quick delivery service in parts of Bengaluru, Delhi NCR, Mumbai, Pune, Hyderabad, and Varanasi. The ecommerce app delivers groceries and other products in 10-20 minutes.
Pincode works on marketplace model
According to 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.
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“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.
Phonepe introduces Pincode to deliver in Bengaluru in 2023
In April 2023, PhonePe initially launched Pincode app in Bengaluru 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.
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With the entry into the quick commerce space, Pincode will 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.
