Amazon India is preparing to enter the quick commerce space with a new service, currently codenamed Tez, targeting a launch as early as late December or early next year. This move marks Amazon’s first global foray into quick commerce, positioning it to compete with established players like Blinkit, Zepto, and Swiggy Instamart in a segment that generated an estimated $5.5–6 billion in gross sales this month alone.
Key Highlights:
- Accelerated Launch Timeline:
- Initially planned for Q1 2025, Amazon has expedited the timeline to capitalize on market momentum.
- The revised timeline aims for a launch ahead of Q1 2024, with internal discussions scheduled for early December.
- Focus on Groceries and Essentials:
- Amazon Tez is expected to begin with groceries and daily essentials, leveraging consumer demand for ultra-fast deliveries.
- The strategy aligns with competitors’ models, utilizing dark stores and refined logistics to ensure quick delivery.
- Operational Preparations:
- Amazon is hiring aggressively for the project, describing it as a “greenfield, grounds-up initiative” in the fast-growing Indian ecommerce space.
- It is setting up logistics infrastructure and working on stock-keeping units (SKUs) for seamless inventory management.
- Strategic Importance:
- Quick commerce is India’s fastest-growing ecommerce segment, with platforms seeing robust consumer adoption.
- Amazon is the only major ecommerce firm yet to tap into this space, making Tez a crucial part of its India strategy.
- Existing Logistics Advantage:
- Amazon plans to leverage its delivery network in India while also partnering with external logistics providers for enhanced service efficiency.
Implications for the Quick Commerce Market
The launch of Amazon Tez intensifies competition in a crowded yet lucrative sector. Amazon’s global brand recognition, existing logistics infrastructure, and ecommerce experience could give it a strong start. However, competing against established players like Blinkit, Swiggy Instamart, and Zepto will require Amazon to innovate on pricing, delivery speeds, and customer experience.
The move also underscores Amazon’s commitment to expanding its footprint in India, a key growth market, as it looks to diversify beyond its core ecommerce offerings.
