Amazon India is planning to enter the highly competitive quick commerce market in early 2025, targeting the rapidly growing demand for ultra-fast delivery of essential items. This move places Amazon in direct competition with established players like Blinkit, Zepto, and Swiggy Instamart.
Quick commerce, which focuses on delivering groceries, household essentials, and other items within 10 to 30 minutes, has seen a significant rise in popularity, especially in urban areas where consumers prioritize speed and convenience. The sector has attracted significant investments, with companies like Zomato-backed Blinkit, Y Combinator-funded Zepto, and Swiggy’s Instamart leading the charge. Amazon’s entry into this space is seen as a strategic expansion of its existing e-commerce operations, which already dominate various other retail categories in India.
The upcoming venture will be spearheaded by Nishant Sardana, who currently heads Amazon India’s Grocery and Fresh categories. Sardana’s experience in managing Amazon’s grocery operations will be crucial in navigating the quick commerce landscape, which requires efficient logistics, a wide network of delivery partners, and a robust supply chain to ensure timely deliveries.
Reports suggest that Amazon is considering both organic growth and potential acquisitions to establish its quick commerce presence. There are ongoing discussions about acquiring Swiggy Instamart, one of the leading players in the market. If successful, this acquisition would provide Amazon with an established infrastructure and customer base, giving it a competitive edge right from the start.
Amazon’s entry into quick commerce comes at a time when Flipkart, its primary rival in India, has already made inroads into the sector. Flipkart recently launched its own quick commerce service, “Flipkart Minutes,” which offers rapid delivery of groceries and essentials in select cities. Additionally, BigBasket, another major player in the Indian grocery delivery market, has also shifted its focus to quick commerce through its BB Now service.