PhonePe-owned Pincode has ventured into the competitive quick commerce market, offering grocery and essential deliveries within 10-20 minutes. Currently piloting in Bengaluru, Delhi NCR, Mumbai, Pune, Hyderabad, and Varanasi, Pincode is challenging established players like Blinkit, Swiggy Instamart, Zepto, and Flipkart Minutes.
Marketplace Model Over Dark Stores
Unlike many quick commerce companies, Pincode opts for a marketplace model instead of the dark store approach. This strategy connects local kirana stores with buyers directly through the platform. By avoiding dark stores, Pincode eliminates warehouse costs and simplifies operations, benefiting both retailers and customers.
A source stated, “Delivery from a neighborhood kirana store within 20 minutes is achievable without setting up dark stores. This asset-light model maximizes efficiency for all stakeholders.”
Wide Product Range Delivered Fast
During its pilot phase, Pincode delivers groceries, personal care items, and sports equipment, among others. Deliveries are handled by Pincode’s own executives and logistics partners like Shadowfax and Loadshare.
This approach offers customers speed without compromising on product variety, making it a significant competitor in the quick commerce space.
Evolution of Pincode
Launched in April 2023 on the Open Network for Digital Commerce (ONDC) platform, Pincode initially catered to grocery, apparel, food, and technology products. Over time, it shifted away from the ONDC network, focusing on building its own marketplace and enhancing the seller experience.
Pincode has since streamlined its services, exiting categories like fashion and electronics to concentrate on essentials and quick delivery.
Competing in a Growing Market
The quick commerce segment is heating up, with major players expanding aggressively. Zepto raised $1.3 billion in 2024, while Swiggy and Zomato are investing heavily in dark stores for Instamart and Blinkit.
By leveraging an asset-light model, Pincode positions itself as a cost-efficient alternative, reminiscent of Dunzo’s earlier strategy before adopting dark stores.
Conclusion
Pincode’s marketplace-based quick commerce model is a promising entrant in a market driven by speed and convenience. Its focus on kirana stores and efficient logistics could redefine customer expectations and disrupt existing models, ensuring competitive growth in this dynamic segment.
