Amazon Introduces the Tez Delivery for Rapid Commerce

Nitin Konde, Varun Bhardwaj

Nov 25, 2024 — 2 min read

Amazon Launches Tez Delivery for Rapid Commerce Solutions

In an attempt to join the rapidly growing industry, which saw gross sales of over $5.5–6 billion this month, headed by Blinkit, Zepto, and Swiggy Instamart, Amazon India is rushing to deploy its quick commerce delivery service, codenamed Tez, by late December or early next year, according to a media report.

The US giant had previously planned to launch the service in the first quarter of 2025, but they now want to go more quickly. Especially since it is the only sizable e-commerce company that is not present in the fastest-growing online sector in India. Tez, which is merely a working name for the projected company, will begin in India, marking Amazon's first international entry into the rapid commerce space.

Amazon is on the Hiring Spree

According to the report, a lot of work is being done with different stakeholders both inside and outside the company.

The e-commerce company has a core team of workers focusing on the high-priority project, but it is also hiring new staff for it. According to a job posting, the project is a "greenfield, grounds-up initiative for an upcoming and fast-growing ecommerce space in India," according to Amazon's India grocery and basics team. According to the news article, the rapid commerce service's ultimate name has not yet been determined.

Amazon hopes to introduce it in India by the end of the first quarter. If one runs a significant consumer online platform, quick commerce is the hub of activity. The company is also using the same approach as others, which consists of establishing logistics infrastructure, determining the specifics of stock-keeping units (SKUs) and categories, and setting up dark shopfronts. It is anticipated that the business will begin the service with everyday necessities and food.

Locking Horns with Flipkart and Other Players

Before the start of this year's festive sales in September and October, Flipkart, Amazon's fiercest rival in India, introduced its rapid service, Minutes, and has since expanded the service throughout key cities.

BigBasket, owned by Tata, is also involved in the competition. According to various media reports, the company switched to the fast model and generated over INR 900 crore in revenue last month.

Tata Digital, the company that operates Tata Neu, has also launched its own fast commerce solution, Neu Flash. Before Swiggy Instamart went public on the stock exchanges in early November, Amazon had already talked about a possible partnership with the food delivery service.

All of the platforms are actively increasing their operations as a result of the flood of cash into the fast commerce sector. In addition to Zomato, the parent company of Blinkit, obtaining shareholder approval to raise an additional $1 billion through QIP, Zepto raised an additional $350 million last week, boosting its cash pile of over $1 billion.