Amazon Ventures into Quick Commerce, Shakes Up Competitive Market
Amazon announces quick commerce entry, joining fierce competition in India’s fast-growing market, leveraging its logistics network to compete with Blinkit, Zepto, and Swiggy Instamart.
Amazon India is making its entry into the quick commerce sector under the code name “Tez,” with a launch expected around December 2024 or January 2025. This marks Amazon’s move to compete in a fast-growing market currently valued at $5.5–6 billion, dominated by players like Blinkit, Zepto, and Swiggy Instamart. The service aims to offer lightning-fast deliveries and ultimate convenience, continuing the quick commerce trend that has evolved from the urgency of traditional kirana shopping.
Preparations for the launch are underway, with Amazon recruiting a core team to lead this initiative. According to Amazon’s grocery and essentials team, this project is a "ground-up initiative" in the rapidly expanding e-commerce space in India. Discussions and next steps will be finalized in early December during Amazon’s annual Smbhav event.
Amazon’s quick commerce entry comes after a previous attempt to acquire Swiggy Instamart fell through in July 2024. It also follows the example of competitors like Flipkart’s Minutes, BigBasket’s quick delivery model, and Tata Neu’s Neu Flash, among others.
Experts see Amazon’s move as both timely and strategic. Manu Prasad, a marketing expert, notes that slowing e-commerce growth (10–15%) and stiff competition from Meesho and Flipkart in smaller cities have driven Amazon to explore high-growth sectors like quick commerce, which is expanding at 125% annually.
Despite challenges, Amazon has significant advantages, including its large Prime subscriber base, strong logistics network, and widespread seller ecosystem. However, the company must overcome hurdles like its cluttered app interface, which could complicate adding a quick commerce feature.
To support this new venture, Amazon might repurpose stores from its 2018 acquisition of More Retail as dark stores for 10-minute deliveries, although the absence of More’s presence in key cities like Mumbai and Pune could limit its reach initially.
Quick commerce platforms are now broadening their offerings to include categories like electronics, apparel, and beauty, while incentivizing higher-order values with discounts. Players like Zomato, Swiggy, and Zepto are raising significant funds to expand their operations, introducing new services, and enhancing customer value.
As investments pour into this sector and competition intensifies, consumers are set to enjoy better services, more choices, and greater convenience in the quick commerce race.