As India’s quick commerce sector continues to grow despite initial skepticism, major e-commerce players are increasingly jumping on the bandwagon. Following Flipkart’s recent launch of its ‘Flipkart Minutes’ service, Amazon is now entering the competitive space, joining the ranks of Zepto, Blinkit, Swiggy Instamart, and others.
Amazon’s new quick commerce service, named ‘Tez’ (which means “Fast” in Hindi), will kick off in Bengaluru later this month.
The quick commerce market in India has seen rapid growth, with more consumers turning to services offering faster delivery times. What started with the quick delivery of basic essentials has quickly expanded to a wide variety of products — from iPhones to fashion. The demand for quick commerce isn’t just limited to daily necessities anymore, as consumers now expect fast delivery for nearly everything. In fact, platforms recently delivered 10g gold coins during the Diwali festival, showcasing the growing convenience appeal.
“Our goal remains the same: to offer the largest selection of products to the largest customer base at the fastest speeds. We recognize that our urban customers are eager for a small selection of everyday essentials delivered faster,” said Amit Agarwal, Amazon’s Senior Vice President for India and Emerging Markets. While Amazon has not yet fully disclosed which products will be part of its rapid delivery model, it is expected to include groceries, home essentials, and personal care items.
Amazon’s entry into India’s quick commerce sector comes at a time when the market is growing rapidly, expected to reach a value of $3.34 billion this year and grow at a CAGR of 23.88% from 2024 to 2029. Established players like Blinkit (owned by Zomato), Swiggy Instamart, and Zepto, a $5 billion quick commerce leader, already dominate the space, offering delivery times ranging from 10 to 15 minutes. Additionally, Flipkart, Amazon’s biggest rival, launched its ‘Flipkart Minutes’ service earlier this year, which promises 10-minute deliveries of groceries and other items.
Though Amazon is entering the quick commerce market later than its competitors, it has a significant advantage in terms of infrastructure, technology, and its delivery network in India. “Our strategy has always focused on selection, value, and convenience, and our vision is to build a large, profitable business in India. We will be piloting a service that offers customers the option to get their everyday essentials in 15 minutes or less,” said Samir Kumar, Country Manager of Amazon India.
Amazon India recently reported a 14% increase in operating revenue for fiscal year 2024, totaling ₹25,406 crore, marking slower growth compared to previous years.
