Amazon promises to provide daily necessities in 15 minutes or less as it makes a daring entry into India’s expanding rapid commerce business. Later this month, the test program will launch in Bengaluru, bringing competition to a market currently dominated by Swiggy Instamart, Zepto, and Blinkit. Samir Kumar, the national manager for Amazon India, made the announcement during the company’s annual Smbhav event in Delhi.
He explained that the test experiment is intended to satisfy the need for quicker delivery and emphasised Amazon’s emphasis on “selection, value, and convenience.” The service’s name, allegedly “Tez,” has not been verified. The business intends to support its operations with dark shops, which are tiny warehouses that only fulfil online purchases. Although Amazon has not disclosed the number of dark stores it plans to open or the cities that will follow Bengaluru, insiders say that future growth will be contingent on the pilot’s success.
In India, quick commerce is expanding quickly due to shifting customer preferences and an increase in the need for convenience and quickness. Ninety-one per cent of Indian internet shoppers are aware of rapid commerce platforms, and over half have recently utilised them, according to Meta research. According to the survey, 57% of consumers are spending more money on rapid commerce platforms, with the most popular categories being food and personal care items. Quick commerce concentrates on daily necessities that consumers need right away, in contrast to traditional e-commerce, which is frequently connected to gadgets and fashion.
As customers depend more and more on fast commerce platforms to restock fresh fruit, dairy, and other essentials, the grocery sector has profited greatly from this trend. This is a big change because traditional e-commerce often takes longer to provide these kinds of things. Amazon is entering rapid commerce later than its competitors, who have already dominated the industry. By using robust networks of underground shops, businesses like Blinkit, Zepto, and Swiggy Instamart can supply groceries and other necessities in minutes.
“We take our time to make decisions, but when we do, we aim to build a fine product,” Kumar responded when asked why Amazon took so long to debut. India’s fast commerce market is expected to be worth $6 billion and is expanding quickly. Instead of the conventional one- or two-day possibilities, consumers are increasingly turning to platforms that guarantee ultra-fast deliveries, particularly in metropolitan regions. Amazon already offers a two-hour grocery delivery service called Amazon Fresh. The 15-minute service may provide it with a convenience advantage and draw in additional clients from its millions of current clientele, including Prime subscribers.
Amazon’s arrival may disrupt the market for established players like Blinkit, Zepto, and Swiggy Instamart. These players have made extensive use of their first-mover advantage and existing networks. Amazon may challenge its hegemony with its client base, financial resources, and logistics know-how. But it won’t be simple. Fast commerce necessitates perfect execution, which includes competitive pricing, effective delivery systems, and robust inventory management. If Amazon makes any mistakes, it may find it challenging to establish itself in a market where competitors are already well-established.
