PhonePay launches ‘Pincode’, the latest entrant in Q-comm market

PhonePe has launched a new rapid delivery service called Pincode, targeting the fast-evolving q-commerce sector with a focus on delivering products in just 15 minutes. This move marks the company’s expansion into other markets ahead of a much anticipated public listing next year.

From what is understood, the introduction of Pincode follows PhonePe’s exit from the Open Network for Digital Commerce (ONDC), a government-backed initiative, and the decision to pivot its e-commerce strategy toward quick commerce.

Reportedly, currently available in select parts of Bengaluru, Mumbai, New Delhi, Pune, Hyderabad, and Varanasi, Pincode aims to offer ultra-fast deliveries in about 10-15% of these areas. The company plans to expand coverage to 25% of these cities within a few weeks, with the goal of providing full urban coverage by the end of the April-June quarter in 2025.

In contrast to its competitors, Pincode is employing a hybrid delivery model, which combines PhonePe’s own fleet with partnerships with local kiranas and modern retail stores, bypassing the common reliance on dark stores, the company stated. To further support its operations, PhonePe has partnered with logistics firms like Swiggy, Shadowfax, and Loadshare to enhance delivery speed and reliability.