what-are-the-flipkart-subsidiaries

What Are The Flipkart Subsidiaries?

Flipkart is an Indian eCommerce company headquartered in Bangalore and founded by Binny Bansal and Sachin Bansal in 2007. Flipkart started as an online book retailer but soon branched out into consumer electronics, fashion, groceries, and home essentials. Today, Flipkart is the largest eCommerce site in India where it does battle with the Amazon-owned platform Snapdeal. The company and its subsidiaries secured an impressive 60% of the total market share during the Indian festive sales period in late 2021.

Myntra

Myntra is a fashion eCommerce company founded by Mukesh Bansal, Vineet Saxena, and Ashutosh Lawania in 2007.

Myntra initially offered a personalized gift service for B2B customers selling shirts, mousepads, and mugs. Four years later, however, it transitioned to fashion and lifestyle products with more than 350 brands available by 2012.

Flipkart acquired the company in 2014 in a deal worth approximately $330 million. Myntra continues to operate as a standalone brand for fashion-conscious consumers.

PhonePe

PhonePe is a financial services and digital payments company that was founded in 2015 by Sameer Nigam, Burzin Engineer, and Rahul Chari.

The PhonePe app is one of several to utilize the United Payments Interface (UPI) system developed to facilitate P2P and P2M transactions.

The app is available in 11 Indian languages including Hindi, Bengali, and Tamil, with users able to send and receive money, recharge mobile credit, purchase insurance, and pay their utility bills, to name a few features.

Ekart

Ekart is an Indian courier delivery company that ships the majority of orders that occur on Flipkart’s eCommerce platform. 

The company claims to be the largest end-to-end logistics and supply chain fulfillment business in India. It has a focus on consistency and excellence in customer service, reliability, and the ability to deliver at scale.

Upstream Commerce

Upstream Commerce is an Israeli-based analytics startup that was acquired by Flipkart in 2018 for an undisclosed amount.

The move enabled Flipkart to establish a presence in one of the world’s most innovative startup ecosystems and develop data science to help it better manage its eCommerce pursuits.

Announcing the deal, Flipkart chief executive Kalyan Krishnamurthy noted that while the company had created its own seller pricing algorithms, Upstream Commerce would strengthen its capabilities and “be able to provide them (sellers) with automated pricing and help plan better selection in the most accurate, timely, and profitable way.

Ugenie

Ugenie is a comprehensive membership software solution for community-centric businesses such as coaches, entrepreneurs, academies, non-profits, and associations.

Features across various paid plans include branded websites and apps, community creation and management, email notifications, business analytics, GDPR compliance, and secret group functionality.

Ugenie became a Flipkart subsidiary after the company purchased the California-based social book discovery tool weRead.com. This acquisition, which occurred in 2010, was Flipkart’s first.

Key takeaways:

  • Flipkart is an Indian eCommerce company headquartered in Bangalore and founded by Binny Bansal and Sachin Bansal in 2007. Today, Flipkart is the largest eCommerce site in India where it does battle with the Amazon-owned platform Snapdeal.
  • Flipkart subsidiaries include fashion eCommerce company Myntra and financial services company PhonePe. The company also acquired courier service Ekart which handles the delivery of online orders.
  • Flipkart acquired Upstream Commerce in 2018 to establish a presence in the innovative Israel startup scene and develop better data-driven pricing algorithms. Community membership software platform Ugenie was part of Flipkart’s first acquisition in 2010.

Case Studies: DoorDash, Uber Eats, Postmates.

Read Next: Business Models.

Connected Last-Mile Delivery Business Models

Deliveroo Business Model

deliveroo-business-model
Deliveroo is a British online food delivery company founded by Greg Orlowski and Will Shu in 2013. Shu developed the platform in response to a lack of high-quality food delivery in London. Deliveroo makes money by collecting 25-45% of every order it facilitates. It also charges delivery fees and onboarding fees for restaurants that wish to be featured on the platform. Deliveroo for Business is a service designed for corporate clients needing to order food in bulk. The company also charges a higher commission to businesses that utilize a network of digital kitchens to process orders.

DoorDash Business Model

how-does-doordash-make-money
DoorDash is a platform business model that enables restaurants to set up at-no-cost delivery operations. At the same time, customers get their food at home, and dashers (delivery people) earn some extra money. DoorDash makes money by markup prices through delivery fees, memberships, and advertising for restaurants on the marketplace.

Glovo Business Model

glovo-business-model
Glovo is a Spanish on-demand courier service that purchases and delivers products ordered through a mobile app. Founded in 2015 by Oscar Pierre and Sacha Michaud as a way to “uberize” local services. Glovo makes money via delivery fees, mini-supermarkets (fulfillment centers that Glovo operates in partnership with grocery store chains), and dark kitchens (enabling restaurants to increase their capacity).

GrubHub Business Model

grubhub-business-model
Grubhub is an online and mobile platform for restaurant pick-up and delivery orders. In 2018 the company connected 95,000 takeout restaurants in over 1,700 U.S. cities and London. The Grubhub portfolio of brands like Seamless, LevelUp, Eat24, AllMenus, MenuPages, and Tapingo. The company makes money primarily by charging restaurants a pre-order commission, and it generates revenues when diners place an order on its platform. Also, it charges restaurants that use Grubhub delivery services when diners pay for them. 

Lyft Business Model

lyft-business-model
Lyft is a transportation-as-a-service marketplace allowing riders to find a driver for a ride. Lyft has also expanded with a multimodal platform that gives more options like bike-sharing or electric scooters. Lyft primarily makes money by collecting fees from drivers that complete rides on the platform.

OpenTable Business Model

how-does-opentable-make-money
OpenTable is an American online restaurant reservation system founded by Chuck Templeton. During the late 90s, it provided one of the first automated, real-time reservation systems. The company was acquired by Booking Holding back in 2014 for $2.6 billion. Today OpenTable makes money via subscription plans, referral fees, and in-dining with its first restaurant, as an experiment in Miami, Florida.

Postmates Business Model

postmates-business-model
Postmates is a food delivery service built as a last-mile delivery service platform connecting locals with shops. Postmates makes money by collecting fees (commission, delivery, service, cart, and cancellation fees). It also makes money via its subscription service (called Unlimted – $9.99/month or $99.99 annually), giving free delivery on orders of more than $12.

Uber Eats Business Model

uber-eats-business-model
Uber Eats is a three-sided marketplace connecting a driver, a restaurant owner, and a customer with Uber Eats platform at the center. The three-sided marketplace moves around three players: Restaurants pay commission on the orders to Uber Eats; Customers pay small delivery charges and, at times, cancellation fees; Drivers earn through making reliable deliveries on time.

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