BENGALURU: Flipkart is set to launch a separate business vertical to cater to 90-minute delivery of goods from local stores and small distribution centers, people aware of the matter said.

They said the company will start grocery services as it seeks to muscle in on the hyperlocal segment, as competition intensified with the likes of Reliance-owned JioMart, and the global e-commerce giant Amazon, entering the offline retail ecosystem.

People said that the e-commerce company will leverage the last-mile capabilities logistics startup Shadowfax, which invested $ 60 million last year, to facilitate its entry into the segment.

" The launch is a month away, but the long-term plan is to deliver everything in 90 minutes," said a person directly aware of the matter.

To begin with, the retailer will start deliveries from its own dark stores, or local warehouses and select shops, but will eventually expand it to include modern corner stores and retailers within a specific neighborhood, the person said on the condition of anonymity.

The COVID-19 pandemic has led to faster convergence of online and offline commerce,  with traditional businesses increasingly collaborating with online channels as a long-term strategy to generate demand.

The service will begin in Bengaluru and is likely to be a one-city pilot until the company's flagship Big Billion sale, which is scheduled in October each year.

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