E-commerce giant Amazon is reportedly preparing to launch its quick commerce service in India. Aiming to compete with the likes of Blinkit, Swiggy Instamart, Zepto and BBNow, this move signals Amazon’s intention to tap into the rapidly growing market for on-demand delivery of groceries and other items.
According to The Economic Times, Amazon India has assigned a senior executive to lead the development of its quick commerce strategy.The company is expected to start enter the quick commerce segment in the first quarter of 2025. “The action in quick commerce just can’t be ignored any more,” a source close to the development told ET.
Quick commerce, which involves delivering groceries and other products within minutes or hours, has gained significant traction in India, with several players vying for market share. Recently, Flipkart also started its quick commerce service Minutes in Bengaluru. “The work (on a quick commerce vertical) has been in motion for some time, but now, there is clarity and a timeline,” added the spokesperson.
Dilemma and challenges ahead
The move signals Amazon’s intent to capture a share of India’s rapidly growing instant delivery market. However, the company faces significant challenges and dilemmas as it enters this highly competitive space.
According to The Economic Times, Amazon India has assigned a senior executive to lead the development of its quick commerce strategy.The company is expected to start enter the quick commerce segment in the first quarter of 2025. “The action in quick commerce just can’t be ignored any more,” a source close to the development told ET.
Quick commerce, which involves delivering groceries and other products within minutes or hours, has gained significant traction in India, with several players vying for market share. Recently, Flipkart also started its quick commerce service Minutes in Bengaluru. “The work (on a quick commerce vertical) has been in motion for some time, but now, there is clarity and a timeline,” added the spokesperson.
Dilemma and challenges ahead
The move signals Amazon’s intent to capture a share of India’s rapidly growing instant delivery market. However, the company faces significant challenges and dilemmas as it enters this highly competitive space.
- Amazon would need global approval:Amazon has not yet entered the quick commerce market globally. Any plans to do so in India would require approval from Amazon US.
- Organisational changes in India: Manish Tiwary, Amazon India’s vice president and country manager, has resigned and is currently serving his notice period. He is set to leave the company in October. His departure is expected to affect Amazon’s plans to enter the quick commerce market in the country.
- Talks with Swiggy on hold: Earlier this year, Economic Times reported that Amazon was considering an investment in Swiggy’s food delivery and Instamart services. While negotiations were underway, they have since been paused.
- Customer Acquisition: The Indian market is already crowded with established players, and Amazon will need to offer a compelling value proposition to attract customers.
Amazon’s entry into the quick commerce space is expected to intensify competition in the sector. The company’s vast resources and logistics network could give it a significant advantage over its rivals.
