Athira Sethu
Kochi, 25 November 2024
According to reports, Amazon India is working towards launching its quick commerce service, called Tez, by December-end or early next year. Growth in the quick commerce sector happens to be on fire, according to sources; leading companies Blinkit, Zepto, and Swiggy Instamart are to be seen jostling for sales, which are estimated to reach around $5.5-6 billion this month. Tez is one of Amazon’s first quick commerce projects worldwide. Amazon initially planned to launch the service in 2025 but has now decided to speed up the process.
Tez will be concentrated on fast deliveries of groceries and daily items as per reports. Amazon is employing the staff for this project and working on every aspect like stock management and logistics. The company has not yet decided on the name to be adopted for the service, and the review meeting of the project will be held in December, reports indicated.
Ecommerce quick commerce in India has seen exponential growth, and Amazon is desperate to get into the highly competitive market. Flipkart, Amazon’s biggest competitor in India, recently launched its own offering called “Minutes,” an instant grocery delivery service. Tata Digital’s Neu Flash and Tata’s BigBasket are also playing in the space.
A lot of investments are now flowing into the quick commerce market, where Zepto and Blinkit, among others, have recently raised large sums of money. According to experts, the market will reach $25 billion to $55 billion by 2030, surpassing the food delivery market in size by then. That growth is expected to come from more orders from users and at a higher value.
In additional changes, Amazon India has also looked inward. Samir Kumar has taken over as the new head of Amazon India, in place of Manish Tiwary who left the company. The company has shifted its office in Bengaluru closer to the airport to save costs.
While the overall picture remains positive for Amazon’s India operations with a 14% growth in revenue in FY24, growth has slowed compared to the pandemic years. This doesn’t scare the company, which will continue to grow in this fast-moving sector.
