Initially targeted for the first quarter of 2025, the e-commerce giant is expediting its entry into the $5.5-6 billion sector, which has seen rapid growth led by Blinkit, Zepto, and Swiggy Instamart.
If launched, Tez will mark Amazon’s global debut in the quick commerce space, making it the only large e-commerce platform yet to venture into this booming segment.
Launch timeline
Amazon aims to enter India’s fastest-growing online business by focusing on groceries and daily essentials. The project reportedly involves setting up dark stores, finalising stock-keeping units (SKUs), and building logistics infrastructure for ultra-fast deliveries. The launch date could be finalised during a December review meeting ahead of Amazon’s annual Smbhav event scheduled for December 9-10.
The company is recruiting talent specifically for this project along with a core team working on it. Amazon’s India Grocery and Everyday Essentials team describe the project as an “initiative for an upcoming and fast growing e-commerce space” in a job posting.
Competition
Amazon’s entry into quick commerce comes amid intense competition, with Flipkart launching its Minutes service ahead of the festive season, BigBasket clocking over ₹900 crore in gross sales last month through its quick commerce push, and Tata Digital debuting its Neu Flash service in October.
According to a Morgan Stanley report, the quick commerce market could outpace food delivery by 2026 in gross order value (GOV). Projections estimate the market could reach between $25 billion and $55 billion by 2030, with a shift toward high-frequency, high-value users driving growth.
This year, quick commerce grossed nearly $7 billion, with significant traction in app downloads compared to traditional e-commerce platforms.
What’s next for Amazon India?
As it races to finalise Tez, Amazon will rely on its extensive delivery network and partnerships with logistics providers to meet the expectations of India’s quick commerce users. Whether it can rival incumbents in this ultra-competitive space will depend on its execution and ability to capture a share of this high-growth market.
First Published: Nov 25, 2024 11:39 AM IST