Aiming for a 2025 Launch, Amazon Is Preparing for a Quick Commerce Entry in India

Nitin Konde, Apoorva Bajj

Aug 29, 2024 — 2 min read

Aiming for a 2025 Launch, Amazon Is Preparing for a Quick Commerce Entry in India

The media has reported that Amazon aims to launch its fast commerce service in India in the first quarter of 2025. The US-based eCommerce giant is refocusing its strategy to compete with rival Flipkart, which has just joined the fast-growing category with its 'Minutes' service.

Amazon India has designated a senior executive to spearhead the creation of its speedy commerce strategy in keeping with this approach. This move is part of a larger effort to reorganize its leadership to better compete in the rapidly expanding Indian market.

Exploring the Possibility of Acquiring a Stake in Swiggy

Reportedly, Amazon is looking into buying stakes in Swiggy, specifically its Instamart quick service platform.

According to a media report, a precise schedule has been established, but the foundation for the rapid commerce vertical has been ongoing for some time. Amazon has been pushing the project forward internally.

Since Amazon has not yet introduced a global quick commerce service, the launch of this new service will be subject to permission from Amazon's headquarters. The situation is further complicated because Manish Tiwary, Amazon's chief of India, is presently serving his notice term and is scheduled to depart the company in October.

30-Minute Delivery Is Amazon’s Goal for Speedy Commerce

After getting a head start in the grocery delivery market with its Pantry service, Amazon has been perfecting its strategy by combining its fresh two-hour service with next-day delivery. The fulfillment of these deliveries is handled by More Retail stores, a joint venture with Samara Capital, and customers also have the option of store pick-ups.

The 30-minute delivery trend is changing, even though Amazon's next-day customer base for groceries and non-grocery items is still rather large.

Even if the final product is still in the works, a media report hinted that Amazon might keep slotted deliveries as a tactic, targeting certain SKUs.

Over the course of 2024, the rapid commerce sector experienced substantial changes, and even more changes are on the way. The Mumbai-based firm Zepto is quickly growing its dark store networks and SKUs. In less than two months, the company will finish a $1 billion fundraising round.

Indian Ecommerce’s New Battlefield

According to sources within the business, eCommerce platforms will increase their rapid commerce offerings to encompass 20,000+ products this Diwali, leading to fiercer competition.

New Delhi and Mumbai are the latest cities to get Flipkart's Minutes service, which was first launched in Bengaluru earlier this month. At the same time, BigBasket is ditching its present hybrid model of scheduled and quick deliveries in favor of a quick-delivery-only strategy.

1Lattice and Datum Intelligence predict that the value of India's eCommerce business increased by 18-20% in the first half of this year, with grocery sales increasing by more than 38% due to a dramatic rise in fast commerce.