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Amazon joins quick commerce rush, turning up heat in crowded market

Amazon is set to pilot a 15-minute delivery model in December, which will initially focus on high-frequency essentials, but is expected to evolve based on customer demand and data-driven insights.

Amazon joins quick commerce rush, turning up heat in crowded market

Tuesday December 10, 2024 , 3 min Read

Amazon is making its entry into the burgeoning quick commerce market in India, with plans to pilot a 15-minute delivery service for everyday essentials starting this December.

Samir Kumar, Amazon’s Country Head for India, confirmed the project during a recent press interaction. “We are going to have our own offering of everyday essential items delivered in 15 minutes,” Kumar said.

The initiative, internally codenamed "Project Tez", is set to compete head-on with established players like Zepto, Swiggy Instamart, and Blinkit. “Convenience has always been one of our three core pillars, alongside selection and value. Quick commerce is a natural extension of this philosophy,” he added.

The 15-minute delivery model will initially focus on high-frequency essentials, but is expected to evolve based on customer demand and data-driven insights.

With this, the ecommerce giant joins other major online marketplaces vying for a share of the competitive quick commerce market in India. Rival e-marketplace Flipkart has also gone live with quick commerce operations under 'Minutes' as of August this year. Flipkart-owned fashion and lifestyle retailer Myntra launched a 30-minute delivery service called ‘M-Now’ earlier last week after a pilot in select pin codes of Bengaluru in November.

Kumar emphasised that while high-value items like phones and electronics are part of Amazon's larger ecosystem, they are not the primary focus for the 15-minute delivery model, which will concentrate on everyday essentials.

"How many times are you going to buy a phone? These are high-consideration decisions that take time. You’d want to read reviews and make informed choices,” Kumar explained. He acknowledged that there might be rare cases where customers need a quick replacement for a broken phone, and Amazon would cater to such needs. However, the quick commerce platform is being designed primarily for frequently purchased items, not high-value or premium electronics.

Amazon’s established presence in the grocery sector will play a crucial role in this venture. “One out of five items shipped from Amazon in India is a grocery product, and fresh groceries make up a significant portion of that,” Kumar noted.

The company’s existing infrastructure, including its network of fulfillment centers and partnerships with local stores, will be leveraged to support the new service. “We’re already serving a large segment of customers with grocery. Quick commerce is just about adding speed to the equation,” he added.

When asked whether Amazon’s entry into quick commerce comes too late, Kumar emphasised the company’s deliberate approach. “For us, it’s not about being the first. It’s about getting it right. We take our time to make decisions because we want to build a service that works at scale, is safe, and is sustainable,” he explained. He dismissed concerns about timing, saying, “Quick commerce is still in its infancy. We’re scratching the surface of what’s possible, and there’s a long journey ahead.”

Kumar highlighted Amazon’s commitment to safety as a differentiator, especially in a market where 15-minute delivery places immense pressure on logistics networks. “The safety of our associates and delivery partners is a top priority. We are ensuring they are equipped with helmets, adhere to traffic regulations, and operate under conditions that prioritize their well-being,” he said.

In response to questions about how Amazon plans to differentiate itself from competitors, Kumar pointed to the company’s vast product selection. “While others might offer a limited range of 5,000 items, Amazon’s ecosystem supports millions of SKUs,” he said.


Edited by Jyoti Narayan