Amazon India is set to transform the burgeoning quick commerce market with the anticipated launch of its delivery service, codenamed Tez, by late December 2024 or early 2025. Initially slated for a 2025 first-quarter debut, the timeline has been expedited as the e-commerce giant aims to tap into India’s rapidly expanding online grocery and essentials delivery sector, a segment that generated gross sales of $5.5-6 billion this month.
Amazon Enters a Booming Quick Commerce Space
The quick commerce segment is witnessing explosive growth, with major players like Blinkit, Zepto, and Swiggy Instamart already dominating the market. Known for ultra-fast delivery of groceries and daily necessities, the market is projected to grow substantially, potentially reaching $25 billion to $55 billion by 2030, according to Morgan Stanley.
If launched, Tez will mark Amazon’s maiden global venture into quick commerce. With rivals like Flipkart, Tata Neu, and BigBasket already expanding their quick commerce footprints, Amazon’s entry is poised to intensify competition.
Strategic Priorities for ‘Tez’
Amazon has begun groundwork for Tez by bolstering its logistics infrastructure and setting up dark stores to optimize stock-keeping and rapid deliveries. Its India grocery and essentials team has called the project a “ground-up initiative in a fast-growing e-commerce space.”
During Amazon’s December monthly review meeting, detailed plans for Tez are expected to be finalized. Additionally, the annual Sambhav event will likely shed further light on the initiative.
Rivals Are Scaling Operations
Competitors have been rapidly scaling their operations to secure market share. Flipkart’s Minutes service has expanded across major cities, while the Tata Group’s Neu Flash has emerged as a strong contender. BigBasket also embraced the quick commerce model, reporting over Rs 900 crore in gross sales in October.
Meanwhile, Zepto raised $350 million, boosting its valuation and cash reserves to over $1 billion. Blinkit, operated by Zomato, secured shareholder approval to raise an additional $1 billion, underscoring the growing investor confidence in this sector.
Market Outlook
High-frequency users are projected to drive nearly 75-80% of the total market value by 2030, with quick commerce potentially overtaking food delivery in gross order value by 2026. Amazon’s move into this dynamic space signals its intent to claim a significant share of this lucrative market.
