Amazon has entered India’s burgeoning quick commerce sector, launching a pilot for 15-minute delivery in Bengaluru, The Economic Times reported.
This marks Amazon’s first venture into such a rapid delivery service anywhere in the world. The initiative reflects the growing demand among urban consumers in India for faster delivery of everyday essentials. Amit Agarwal, Amazon’s Senior Vice-President for India and emerging markets, stated that the service will initially cover thousands of products, with plans to expand to other cities.
Despite investing over $7.5 billion in India over the past decade, Amazon has struggled to capture significant market share.
‘Amazon has not been able to capitalise on white spaces across quick-commerce, smaller towns, and categories like apparel’, says Rahul Malhotra, an analyst at Bernstein. Quick commerce represents an opportunity for Amazon to address these gaps and compete more effectively with local rivals.
Samir Kumar, the new country manager of Amazon India, emphasised the importance of speed in addressing Indian consumers’ evolving preferences: ‘While we focus on implementing our strategy to offer the largest selection at the fastest speeds and greatest value to customers across the country, we are excited to start a pilot to give our customers a choice to get their everyday essentials in 15 minutes or less.’
While the quick commerce segment offers significant growth opportunities, it also poses challenges. Logistics, technology, and supply chain management investments are essential to competing with well-established players. Amazon’s ability to deliver on its promise of speed, convenience, and value will be critical in shaping its position in this dynamic market.
Quick commerce — the delivery of items within 10 to 15 minutes — has found limited success globally but is thriving in India. The country’s unique market dynamics, including dense urban centres and an increasing reliance on e-commerce, provide a fertile ground for this model. According to CLSA, India’s quick commerce market is projected to grow sixfold between FY24 and FY27, reaching $27 billion.
India’s quick commerce market is already competitive, with established players like BlinkIt, Swiggy, and Zepto leading the charge. Flipkart, Amazon’s biggest rival, launched its quick-commerce service earlier this year, while Myntra, owned by Flipkart, recently introduced ‘M-Now,’ a 30-minute delivery service for fashion and lifestyle products.
