PhonePe’s ecommerce platform, Pincode, is testing a quick delivery service in select cities, including Bengaluru, Delhi NCR, Mumbai, Pune, Hyderabad, and Varanasi. The pilot project promises to deliver groceries, personal care items, and other products within 10 to 20 minutes, marking Pincode’s entry into the competitive quick commerce market.
Unlike traditional quick commerce platforms that rely on a dark store model, Pincode operates using a marketplace approach. This model connects neighborhood kirana stores and buyers, enabling hyperlocal deliveries without the need for dedicated warehouses. Products are delivered by Pincode’s delivery executives and logistics partners like Shadowfax and Loadshare.
The asset-light model eliminates the costs associated with inventory storage and warehouse management, positioning Pincode as a cost-effective and retailer-friendly solution in the quick commerce space.
Pincode’s Shift in Strategy
Initially launched in Bengaluru in April 2023, Pincode began as a buyer-focused app operating on the Open Network for Digital Commerce (ONDC) platform, offering groceries, apparel, food, and tech products. However, the platform has since exited the ONDC network and shifted focus toward building its own marketplace and enhancing the seller-side experience.
As part of this shift, Pincode streamlined its categories, moving away from segments like fashion, grocery, and electronics earlier this year. With the new quick commerce pilot, Pincode aims to rival established players like Blinkit, Zepto, Swiggy Instamart, and BigBasket.
Competitive Landscape
The quick commerce market is heating up, with companies like Zepto expanding aggressively. In 2024 alone, Zepto raised over $1.3 billion across three funding rounds to fuel its growth. Pincode’s entry signals a growing interest in this segment as PhonePe leverages its platform to tap into the rising demand for ultra-fast deliveries.