Amazon Enters India’s $6-Billion Quick Commerce Market with Bengaluru Pilot

Bengaluru – Amazon has announced its entry into India’s booming quick commerce market, marking the global e-commerce giant’s debut in the ultra-fast delivery segment. The company plans to launch a pilot project in Bengaluru later this month, with a promise to deliver everyday essentials within 15 minutes.

Samir Kumar, Country Manager for Amazon India, made the announcement at Amazon’s flagship Smbhav 2024 summit in Delhi. The move is a significant milestone under Kumar’s leadership, just two months after he succeeded Manish Tiwary. While earlier reports suggested the service would be branded as Tez, Amazon is yet to finalize a name for its quick commerce initiative.

“Our strategy has always focused on selection, value, and convenience,” Kumar said. “Our vision is to build a large, profitable business in India, offering the largest selection at the fastest speeds and the greatest value to customers in every pin code across the country. With this pilot, we aim to provide customers with the option to receive their everyday essentials in 15 minutes or less.”

The quick commerce market in India has experienced unprecedented growth, with annual sales expected to surpass $6 billion this year, up from just $100 million in 2020, according to Datum Intelligence. This surge has been fueled by changing consumer preferences, with a shift toward near-instant delivery services over traditional one- or two-day delivery models.

Amazon’s entry intensifies competition in a space dominated by established players like Zomato’s Blinkit, Swiggy Instamart, Zepto, Flipkart Minutes, and BigBasket. Flipkart recently launched its Minutes service ahead of the festive season, while BigBasket reported gross sales exceeding ₹900 crore last month through its quick commerce arm. Tata Digital also joined the race with its Neu Flash service in October.

Amazon’s quick commerce initiative has reportedly been in development for months, reflecting the company’s strategy to capture India’s growing demand for ultra-fast deliveries. The pilot launch is expected to expand to other cities after its initial rollout in Bengaluru, signaling Amazon’s intent to establish a significant foothold in this burgeoning market.