Amazon

Amazon enters India's $6 billion quick commerce market with 'Tez'

 

E-commerce behemoth, Amazon India is gearing up for a quick commerce launch – a 15-minute delivery service reportedly called Amazon ‘Tez’ – in Bangalore by the end of December 2024. The service, a global first for Amazon, aims to cater to urban consumers amidst growing demand for ultra-fast delivery of essentials within minutes.

The service will offer a huge selection of 1,000 – 2,000 products, including essentials like food and other home necessities, while the expansion to more cities is underway. The initiative helps Amazon strengthen its position as it is entering India’s $6 billion quick commerce market which predominantly operates in 24 cities.

 

Market Reaction: Swiggy and Zomato Shares Drop

 

The news of Amazon’s foray into 15-minute deliveries has sent ripples through the stock market. On December 11, 2024, Swiggy’s shares dropped 4.25% to Rs 520.45, while Zomato’s shares fell 1.63% to Rs 292.25 by 10:48 AM. BSE Sensex on the other hand, remained almost flat at 81,480.50, down by 0.04% only.

Swiggy Instamart and Zomato’s BlinkIt are major market players in the quick commerce industry in India. Amazon’s vast logistical networks and e-commerce experiences are now being seen as a potential threat to increased competition and market disruption.

 

Quick Commerce: A Competitive Landscape

 

The quick commerce segment in India has gained significant growth driven by food delivery services. Players like BlinkIt, Swiggy Instamart, and Zepto have pooled huge capital on logistics and tech to shrink delivery time. Now, Amazon’s entry as the sixth major force in the market constitutes increased pressure in an already saturated industry.

The quick commerce space thrives on fast delivery, a domain where Amazon has an inherent advantage owing to its developed supply chain infrastructure and international experience. Based on convenience and fast solutions it will be effective to obtain the attention of urban consumers that require instant solutions.

 

Amazon’s Evolution in India

 

Amazon entered the Indian market in 2013 as an online bookseller and expanded its business into other categories such as electronics, fashion and groceries. Currently operating from Bengaluru, the firm has made enhanced supply its backbone to unleash options such as one-day delivery.

The upcoming 15-minute delivery service reinforces Amazon’s commitment to meeting customer needs in India. As the quick-commerce market heats up, incumbents are bracing for the intense competition against the e-commerce titan.

Amazon’s entry into Bengaluru has largely signalled a disruption to the fast-growing segment of quick commerce in India, highlighting the opportunity in this exciting space.