Amazon announced on Tuesday that it is piloting a quick commerce service in India, aiming to deliver groceries and other items to customers in 15 minutes or less. This initiative positions Amazon as the sixth major player in India’s burgeoning quick commerce market, which currently generates over $6 billion in annual sales. Competitors in this space include Zomato-owned BlinkIt, Swiggy, and Nexus-backed Zepto, all of which operate primarily in around two dozen cities.
The pilot program will initially launch in Bengaluru. Samir Kumar, the newly appointed country manager for Amazon India, stated, “Our strategy has always focused on ‘Selection, Value and Convenience,’ and our vision is to build a large profitable business in India.” He expressed excitement about providing customers with the option to receive their everyday essentials quickly.
The quick commerce model, which aims for delivery within 10 to 15 minutes, has faced challenges globally but is gaining traction in India. Various retailers and internet firms, including food delivery giant Swiggy and online cosmetics platform Nykaa, are enhancing their supply chain ecosystems to support faster deliveries. Myntra, a leading fashion e-commerce retailer in India, also recently launched its own quick commerce pilot in Bengaluru.
Amazon’s entry into this segment marks its first major move under Kumar’s leadership, who took over just two months ago. The company has invested more than $7.5 billion since entering the Indian market a decade ago but has struggled to capture a significant share of the overall $1.1 trillion retail market, which is growing at less than 15% annually.
Industry experts believe that quick commerce could represent the future of e-commerce in India. Projections from investment firm CLSA suggest that this segment could grow sixfold between FY24 and FY27, potentially reaching a total addressable market of $27 billion. Currently representing only 3% of the grocery market and 1% of the retail market, quick commerce is expected to expand significantly over the next decade.Despite criticism regarding its slow response to market trends and competition, Amazon’s latest initiative reflects its commitment to adapting to changing consumer preferences and enhancing its service offerings in one of the world’s largest internet markets.
