Amazon Scales Q-Commerce Operations to 300 Cities Amid Rising Competition
Amazon is pushing its quick-commerce business aggressively, Amazon Now with the competition heating up with Flipkart Minutes, Blinkit, Zepto and Instamart trying to touch 300 cities across India.
The e-commerce behemoth said on June 24 that its chief executive officer, Andy Jassy, is visiting India. While there, he would meet with senior government officials, entrepreneurs, and employees. With this trip, Amazon is stepping up its game in the country when it comes to rapid commerce. Amazon Now, the company's 10-minute delivery service, will soon be available in 300 more cities, according to the announcement.
To back up its development plans, Amazon announced in April that it will launch the service in 100 locations and establish a network of 1,000 stores. According to Samir Kumar, national manager of Amazon India, the company is receiving positive feedback from consumers. Prime members, in particular, are increasing their purchasing frequency by three fold after implementing Amazon Now. The company has sped up its growth even more and will now provide lightning-fast shipping to more than 300 locations in India.
Amazon Building Network as Qcommerce's Battle Intensifies
Bengaluru, Delhi-NCR, Mumbai, Pune, Hyderabad, Amritsar, and Kochi are among the fifteen metro and non-metro locations where Amazon Now now operates around 500 dark shopfronts. On the results call for the March quarter, Jassy mentioned that Amazon Now's orders are increasing by 25% monthly. Amazon India announced an investment of INR 2,800 crore (about $300 million) on June 19th, months before this most recent development. Its nationwide infrastructure and operations, with an emphasis on fast trade, will be fortified by this investment.
Amazon has pledged to invest $35 billion in India by 2030, and this investment is a part of that commitment. The business claims that since the advent of Amazon Now, quarterly orders have increased by 100%. Before this, Kumar had spoken with a media outlet about Amazon's plans to dominate the fast commerce sector. Kumar elaborated by saying that the brand wasn't doing nothing despite its sluggish start in the rapid commerce sector.
According to him, the team from Amazon India was still trying to figure out how to best serve its customers in this sector. Shortly after making up our minds to go, we arrived. "However, we were meticulous in our approach to construction," Kumar emphasised.
Flipkart Minutes Scales to 1,000 Stores
In under two years, Flipkart's Minutes division has grown to 1,000 fulfilment centres in 130 cities. This further demonstrates how cutthroat the rapid delivery industry is in India. As Blinkit, Zepto, and Instamart are pouring money into their stores, product selection, and customer acquisition, Amazon is rapidly growing into this space as well.
The company is around five times larger than it was at the same time last year, according to Kunal Gupta, senior vice president (SVP) and head of Flipkart Minutes. Further, he promised that going forward, the expansion will be vigorous. Approximately 1,500 outlets in more than 180 locations are on the company's radar for the next months.
In addition, Amazon Now officially announced the opening of one hundred massive fulfilment centres in various locations like Bengaluru, Chennai, Delhi-NCR, Hyderabad, and Mumbai. This is an important move as it broadens its product offerings to include gadgets, fans, humidifiers, and more, in addition to groceries.