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Amazon India pilots Amazon now in Bengaluru
Amazon India has officially set foot in the quick commerce space, challenging Blinkit, Zepto, and Flipkart Minutes with its 10-minute service. The global conglomerate is a tad bit late to the party, but the service has already started in select pin codes of Bengaluru, intending to expand in more cities later on.
Read Now:Amazon Launches '15-minute' Delivery Service in India to Challenge Blinkit, Zepto
The 411 on Amazon Now
The quick commerce service, previously known as Tez, follows the increasing popularity of quick commerce platforms, particularly among urban consumers.
Amazon has been offering groceries and daily essentials via Amazon Fresh for a while now, but the service has a 2-hour delivery time. The company stated in November of last year that it was refocusing its efforts to increase order deliveries in 20 to 30 minutes.
The service named Amazon Now is engaging with brands in beauty, home, and kitchen categories as part of its plan for scaling up its operations.
“Our strategy has always focused on “Selection, Value and Convenience” and our vision is to build a large profitable business in India. So, while we focus on implementing our strategy to offer the largest selection at fastest speeds and greatest value to customers in every single pin-code across the country, we are excited to start a pilot to give our customers a choice to get their everyday essentials in 15 min or less. We already have millions of customers across India including Prime Members who trust us and will look forward to this convenience,”
- Samir Kumar, Country Manager, Amazon India stated to Entrackr
This development is significant because, in response to rising competition from up-and-coming labels in the market, established quick commerce providers have begun to expand their dark store count and reach tier II and III cities.
Read More: Quick Com Will Rival E-Com Majors Amazon, Flipkart in 2025, Says Zepto's Aadit Palicha
How it’ll impact the quick commerce space
Currently, India’s quick commerce sector projects annual sales of over $6 billion, and analysts expect a 46% rise by 2030, reaching $40.1 billion, according to a report by Datum Intelligence.
Furthermore, quick commerce platforms are now used by 31% of urban customers to meet their primary grocery demands. Before Amazon, numerous other e-commerce businesses joined the fast commerce race in the hopes of making significant profits.
Walmart-owned domestic e-commerce player Flipkart launched Flipkart Minutes in August last year to protect its turf as existing quick commerce platforms expanded to categories beyond grocery.
Prior to their expected public debut last year, Zepto, founded by Aadit Palicha, raised over $1.35 billion in total over multiple funding rounds. Quick commerce service Neu Flash, powered by Big Basket, has also been launched by Tata Digital, the company that runs the e-commerce super app Neu for the Tata conglomerate.
Following a period of economic viability, quick commerce pioneer Blinkit's dark store development affected its margins, causing it to go into the red in the quarter that ended in December 2024.
Meanwhile, as costs increased due to client acquisition, penetration, and expansion, Swiggy's Instamart saw its margins erode in the third quarter of FY25.