🚀 Amazon's Quick Commerce Leap
Amazon India is accelerating plans to launch Tez, its quick commerce service, by December 2024 or early 2025. Initially planned for Q1 2025, the timeline has been advanced to seize opportunities in the $7B quick commerce market. Tez is Amazon's first global entry into this sector, focusing on groceries and essentials to meet India’s growing demand for ultra-fast delivery. The company is building logistics, including dark stores, to compete with well-established players like Blinkit, Zepto, and Swiggy Instamart.
📈 Competition Heats Up
Amazon faces fierce competition. Flipkart's quick delivery service, Minutes, launched this festive season. Tata-owned BigBasket, which pivoted to the quick model, achieved $108.2M in sales last month. Zepto raised $350M, bringing cash reserves to over $1B, while Blinkit's parent company, Zomato, is raising another $1B. These players are scaling operations aggressively in a sector expected to outpace food delivery in gross order value by 2026.
💡 Strategies and Market Potential
Amazon is betting on India’s quick commerce growth, projected to hit $25–55B by 2030. Morgan Stanley’s report emphasizes rising app downloads and frequent user engagement as key drivers. Amazon’s move includes optimizing costs by relocating its Bengaluru HQ, part of broader efforts to streamline operations while tackling its FY24 losses of $416.5M, which have dropped 28% compared to FY23.
🌐 Amazon’s Local and Global Stakes
India marks Amazon’s first foray into quick commerce globally, reflecting its strategic importance. The company’s $3.1B revenue in FY24, up 14%, underscores the market’s potential. With Tez, Amazon aims to blend its global expertise with local infrastructure. Speed, scale, and an extensive inventory will be vital to standing out against rivals in this fast-growing market.
Will Amazon disrupt India's quick commerce space?
