Amazon India is set to venture into the booming quick commerce market with its new service, reportedly codenamed Tez. According to a Reuters report, the e-commerce giant plans to roll out the service by late December or early 2024. This move positions Amazon as a new player in India’s competitive quick commerce space, currently dominated by Blinkit, Zepto, and Swiggy Instamart.
Amazon’s Strategic Shift
Initially slated for a 2025 debut, the launch of Tez has been expedited, signaling Amazon’s urgency to tap into the rapidly expanding market. Sources indicate the timeline will likely be finalized during the company’s December review meeting, preceding its annual Smbhav event.
The service will focus on delivering groceries and daily essentials, mirroring the models of its competitors. Amazon is reportedly setting up dark stores, managing inventory (SKUs), and establishing a robust logistics network to support ultra-fast deliveries. Recruitment efforts for the initiative are already underway, with job listings hinting at the company’s ambition to establish a strong foothold in this segment.
Although Tez is currently a working codename, Amazon has yet to confirm the final branding for the service.
In Competition With Rivals
Amazon’s entry comes at a time when other giants are aggressively expanding in quick commerce. Flipkart launched its Minutes service earlier this year, reaching major cities. The Tata Group, through its Tata Neu app, introduced Neu Flash, while its BigBasket platform has embraced the quick commerce model, reporting impressive sales figures.
Startups like Zepto and Blinkit are also scaling rapidly. Zepto recently raised $350 million, boosting its valuation to over $1 billion. Meanwhile, Blinkit, backed by Zomato, secured approval to raise an additional $1 billion, underscoring the sector’s appeal to investors.
The Promise of Quick Commerce in India
India’s quick commerce sector, which focuses on the rapid delivery of groceries and essentials, is projected to reach $7 billion in market size by 2024. A Morgan Stanley report predicts even greater growth, estimating the market could swell to between $25 billion and $55 billion by 2030, driven by increasing consumer adoption and order frequency.
High-frequency users, who currently constitute one-third of the customer base, are anticipated to contribute up to 80% of the market’s value by 2030. Additionally, quick commerce is expected to surpass food delivery in gross order value (GOV) by 2026, making it a focal point for e-commerce innovation.
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