The competition in India’s quickly expanding commerce sector is on the verge of a significant shake-up with the anticipated entry of Amazon, the US-based e-commerce giant. Known for its extensive global operations, Amazon is preparing to launch its quick commerce service in India, a market poised for explosive growth. The company’s strategy focuses on delivering products within the coveted 20-30 minute window that has become the industry benchmark for rapid delivery services.
This new venture marks a strategic pivot for Amazon, which has been quietly developing its quick commerce capabilities over the past several months. The rollout is expected to begin in the first quarter of 2025, reflecting Amazon’s serious commitment to capturing a share of the rapidly expanding market.
The news comes amid a leadership reshuffle at Amazon India, with the new quick commerce division being led by Nishant Sardana. Sardana, who previously managed Amazon India’s PC, audio, camera, and large appliances segments, now spearheads the company’s push into the quick commerce sector. This leadership change highlights the strategic importance Amazon places on its new service offering.
In addition to its planned quick commerce service, Amazon is also rumored to be negotiating to acquire a stake in Swiggy's Instamart. This potential acquisition would bolster Amazon’s position in the quick commerce market and signify a robust approach to strengthening its competitive edge.
The quick commerce market in India is on a trajectory to reach $6 billion by 2025, with a substantial growth forecast that underscores the sector's potential. Amazon’s entry into this space will likely intensify competition, particularly as it seeks to catch up with well-established players such as Flipkart, Blinkit, and Zepto, all of which have already secured a foothold in this rapidly evolving market.
Flipkart, a significant competitor, has been making strides with its quick commerce initiative, ‘Minutes.’ Initially launched in Bengaluru, this service is expanding to New Delhi and Mumbai, reflecting the broader growth trend in quick commerce. The sector’s expansion is evident from the surge in grocery sales, which have increased by over 38% in the first half of this year. Quick commerce now represents nearly 40% of online grocery sales, indicating a substantial shift in consumer preferences towards faster delivery options.
As the sector continues to evolve, companies are expected to ramp up their product offerings significantly. Some are aiming to stock as many as 20,000 items by the Diwali festive season, in response to growing consumer demand for quick and convenient delivery options. Amazon’s upcoming entry into quick commerce is poised to drive further innovation and competition, making it a pivotal player in the sector's future.
