Amazon is joining the 15-minute delivery race: A threat for Blinkit, Zepto, and Swiggy Instamart?

Amazon is joining the 15-minute delivery race: A threat for Blinkit, Zepto, and Swiggy Instamart?

Amazon is set to launch a 15-minute delivery service in India, starting with a pilot in Bengaluru. This move intensifies competition with established players like Blinkit, Zepto, and Swiggy Instamart.

Danny D'Cruze
  • New Delhi,
  • Dec 11, 2024,
  • Updated Dec 11, 2024, 11:22 AM IST

Amazon is taking a bold step into India’s growing quick commerce market, promising to deliver everyday essentials in 15 minutes or less. The pilot programme will begin in Bengaluru later this month, adding competition to a sector already dominated by Blinkit, Zepto, and Swiggy Instamart. 

Amazon India’s country manager, Samir Kumar, announced the move during the company’s annual event, Smbhav, in Delhi. He highlighted Amazon’s focus on “selection, value, and convenience,” explaining that the pilot project is designed to meet the demand for faster deliveries. However, the service’s name—rumoured to be “Tez”—has not been confirmed.

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The company plans to use dark stores—small warehouses that exclusively fulfil online orders—to support its operations. While Amazon hasn’t revealed how many dark stores will be set up or which cities will follow Bengaluru, sources suggest that further expansion will depend on the pilot’s success.

Why Amazon wants a piece of the pie?

Quick commerce is rapidly gaining traction in India, driven by changing consumer behaviour and a growing demand for speed and convenience. According to a report from Meta, 91 per cent of online consumers in India are aware of quick commerce platforms, and more than half have used them recently.

The report highlights that 57 per cent of users are spending more on quick commerce platforms, with groceries and personal care products leading the charge. Unlike traditional e-commerce, which is often associated with fashion and electronics, quick commerce focuses on everyday essentials that users need immediately.

The grocery segment has particularly benefited from this trend, as consumers increasingly rely on quick commerce platforms to replenish fresh produce, dairy, and other staples. This is a significant shift, as traditional e-commerce usually involves longer delivery times for such items.

A late but calculated entry

Amazon is entering the quick commerce market later than its rivals, who have already captured significant market share. Companies like Blinkit, Zepto, and Swiggy Instamart have built strong networks of dark stores, allowing them to deliver groceries and other essentials within minutes.

When asked why Amazon took so long to launch, Kumar said, “We take our time to make decisions, but when we do, we aim to build a fine product. Our goal is to ensure safety standards for our associates and customers.”

The quick commerce sector in India is estimated to be worth $6 billion and growing rapidly. Consumers, especially in urban areas, are increasingly shifting to platforms that promise ultra-fast deliveries instead of the traditional one- or two-day options. 

Amazon already operates a two-hour delivery service, Amazon Fresh, for groceries. The 15-minute service could give it an edge in convenience and attract more customers from its existing base of millions, including Prime members.

The challenge for existing players

Amazon’s entry could disrupt the market for current leaders like Blinkit, Zepto, and Swiggy Instamart. These players have relied heavily on their established networks and first-mover advantage. Amazon, with its financial resources, customer base, and logistics expertise, could pose a significant threat to their dominance.

However, it won’t be easy. Quick commerce demands flawless execution—efficient delivery systems, strong inventory management, and competitive pricing. Any missteps could make it difficult for Amazon to gain traction in a market where others already excel.

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