Amazon is Entering the Competition for 15-Minute Deliveries

Nitin Konde, Varun Bhardwaj

Dec 12, 2024 — 3 min read

Amazon Joins the Race for 15-Minute Deliveries

Amazon promises to provide daily necessities in 15 minutes or less as it makes a daring entry into India's expanding rapid commerce business. Later this month, the test programme will launch in Bengaluru, bringing competition to a market already dominated by Swiggy Instamart, Zepto, and Blinkit.

Samir Kumar, the national manager for Amazon India, made the announcement at the company's annual Smbhav event in Delhi. He explained that the test experiment is intended to satisfy the need for quicker deliveries and emphasised Amazon's emphasis on "selection, value, and convenience." The service's name, which is allegedly "Tez," has not been verified, though.

Dark stores, which are tiny warehouses that only fulfil online purchases, will be used by the firm to support its operations. Although Amazon has not disclosed the number of dark stores it plans to open or the cities that will follow Bengaluru, media reports reveal that future growth will be contingent on the pilot's success.

Why Amazon Wants to Test the Waters of Quick Commerce Space?

In India, quick commerce is expanding quickly due to shifting consumer preferences and an increase in the need for convenience and quickness. Ninety-one percent of Indian internet shoppers are aware of rapid commerce platforms, and over half have recently utilised them, according to a Meta research.

According to the survey, 57% of consumers are spending more money on rapid commerce platforms, with the most popular categories being food and personal care items. Quick commerce concentrates on daily necessities that consumers need right away, in contrast to traditional e-commerce, which is frequently visited for gadgets and fashion items. As consumers depend more and more on fast commerce platforms to restock on fresh produce, dairy, and other essentials, the grocery sector has benefitted greatly from this trend. This is a big change because traditional e-commerce typically takes longer to provide these kinds of things.

Entry Made Late But With Purpose

Amazon is joining the rapid commerce space later than its competitors, who have already taken a sizable portion of the industry. With the use of robust networks of underground stores, businesses like Blinkit, Zepto, and Swiggy Instamart can supply groceries and other necessities in a matter of minutes.

Kumar said that Amazon takes its time making decisions but strives to create high-quality products when it does, which is why the firm took so long to launch. Amazon India wants to make sure that its employees and customers are protected. India's quick commerce market is expected to be worth $6 billion and is expanding quickly. Instead of the conventional one- or two-day possibilities, consumers are increasingly turning to platforms that guarantee ultra-fast deliveries, particularly in urban regions.

Amazon already offers a two-hour grocery delivery service called Amazon Fresh. The 15-minute service might provide it with a convenience advantage and draw in more clients from its current clientele of millions, which includes Prime subscribers.

Locking Horns With Market Leaders

The market for established players like Blinkit, Zepto, and Swiggy Instamart may be disrupted by Amazon's arrival. These players have made extensive use of their first-mover advantage and existing networks. With its client base, financial resources, and logistics know-how, Amazon might really challenge their hegemony.

But it won't be simple. Fast commerce necessitates perfect execution, which includes competitive pricing, effective delivery systems, and robust inventory management. In a field where competitors already dominate, any mistakes could make it hard for Amazon to get traction.