Amazon Launches Fast-Delivery Service in India

Amazon announced on Tuesday that it is testing a new quick commerce service in India, where they will deliver groceries and other items in 15 minutes or less. This move makes Amazon the sixth major player in India’s quick-commerce market, which currently generates more than $6 billion in sales annually. Currently, companies like Zomato-owned BlinkIt, Swiggy, and Nexus-backed Zepto dominate this sector, operating in about two dozen cities.

The service is currently being piloted in Bengaluru, according to Amazon India’s new country manager, Samir Kumar. The company’s focus remains on providing a wide selection, great value, and convenience to customers. Quick-commerce, or delivering items within 10 to 15 minutes, has seen limited success in other parts of the world but is gaining traction in India as more retailers and internet companies adapt to meet the demands for faster deliveries.

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India is the only market where Amazon is testing this quick-commerce offering, signaling a major move by the tech giant in the world’s second-largest internet market. Despite investing billions in India’s e-commerce sector over the past decade, the market’s growth has been relatively slow. Some experts believe that quick-commerce could be the future of e-commerce in India.

Projections suggest that quick commerce in India will experience significant growth, with estimates indicating a sixfold increase from FY24 to FY27, leading to a market worth $27 billion. Currently representing a small percentage of the grocery and retail market, this segment is expected to expand significantly over the next decade. Amazon, however, has faced criticism for being slow to capitalize on opportunities in quick-commerce, smaller regions, and specific product categories in India.

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