Amazon Fresh expands to 60 cities in India

Amazon Fresh competes with Swiggy Instamart, BigBasket, Blinkit, and Zepto in the grocery and utilities segment in India.

Amazon Fresh expands to 60 cities in India

Monday May 22, 2023,

2 min Read

Amazon Fresh has expanded to a total of 60 Indian cities and will continue to focus on delivering fresh, high-quality fruits and vegetables, it said on Monday.

The ecommerce giant's grocery delivery service currently offers a selection of fruits, vegetables, chilled products, baby care, personal care, and pet care goods to Indian customers. It enables free shipping on orders worth Rs 249 and fulfils deliveries within the same day or the next day.

Last month, Amazon's quick commerce arm touched 50 cities, Srikant Sree Ram, Head of Amazon Fresh, told The Hindu Businessline.

He added that over 50% of its customers come from Tier II and III markets, including Chandigarh, Thiruvananthapuram, and Kochi, and represent Amazon Fresh's critical customer base.

"With this expansion, customers across India can purchase high-quality fresh fruits and vegetables delivered to them at their doorstep. We have seen good demand for seasonal products like mangoes and summer essentials this season and will continue to remain laser-focused on providing our growing customer base across the country the best online shopping experience," Srikant Sree Ram said in a statement.

Over the last three years, quick commerce has grown tremendously with big players, including BigBasket, Swiggy Instamart, Blinkit, and Zepto, raising millions of dollars in funding. However, the sector typically offers razor-thin gross margins, making it a highly cash-guzzling proposition.

Quick commerce
Also Read
From lightning speed to steady state: Quick commerce’s future in 2023

To make a lucrative business, quick commerce firms are making important changes. Reliance-owned JioMart shut its express delivery operations last month. Mobility firm Ola closed Ola Dash in June last year.

Meanwhile, similar businesses, including Swiggy's Instamart, Zomato's Blinkit, and Bigbasket's BBNow are looking to increase order values and lengthen delivery timelines to cut losses.

Last month, Y Combinator-backed Zepto hired ex-Zilingo CFO Ramesh Bafna as its CFO, adding it will be ready for an initial public offering (IPO) in the next two-three years.

Edited by Suman Singh