Amazon India is gearing up to launch its quick commerce service, Tez, by late December 2024 or early 2025, as reported by The Economic Times. This move marks Amazon's first global entry into the quick commerce sector, which is rapidly expanding in India with competitors like Blinkit, Zepto, and Swiggy Instamart driving significant sales.
Originally slated for a first-quarter 2025 launch, Amazon is now expediting Tez to capitalise on the fast-growing ecommerce segment in India. According to the report, a monthly review meeting in early December is expected to finalise the plans. The initiative, described as a "greenfield, grounds-up" project in job listings, is focusing on team building and logistics infrastructure, including setting up dark stores and stock-keeping categories, starting with groceries and essentials.
Amazon will face tough competition from existing players in the quick commerce space. Flipkart has already launched its quick delivery service, Minutes, ahead of the festive season. BigBasket, owned by Tata, has shifted to the quick model and recorded Rs 900 crore in gross sales last month. Tata Digital’s Neu Flash is also expanding operations following its launch in October.
Meanwhile, Zepto and Blinkit are aggressively scaling, backed by substantial funding rounds. Zepto recently raised $350 million, increasing its cash reserves to over $1 billion, while Zomato, the parent company of Blinkit, received shareholder approval to raise an additional $1 billion.
Morgan Stanley predicts that the quick commerce market could reach $25–55 billion by 2030, potentially surpassing food delivery by 2026 in terms of gross order value. The firm highlights growing app downloads and frequent user engagement as key factors driving the sector’s rapid growth, with the market projected to be worth $7 billion in 2024.
Amazon India is also taking some cost-cutting measures. The company is reportedly shifting its Bengaluru headquarters to reduce costs, aligning with broader strategies to optimise expenses.
Financially, Amazon India reported a 14 per cent increase in revenue to Rs 25,406 crore in FY24, with a 28 per cent reduction in losses to Rs 3,469 crore, although growth rates remain below the pandemic surge years. As Amazon ventures into quick commerce, it aims to establish itself in a competitive market where speed and scale are crucial.