E-commerce giant Amazon has launched a pilot for its new quick commerce service, ‘Tez,’ which promises to provide ultra-fast delivery of groceries and daily essentials in under 15 minutes. The service is currently being tested with employees in select Bengaluru pin codes, marking the company’s first step into India’s rapidly growing quick commerce market. This pilot, which began in December, is aimed at testing the feasibility of offering faster delivery speeds for a selection of everyday items from Amazon’s sellers, focusing on meeting the need for quick and convenient access to essential goods.
An Amazon spokesperson highlighted that the pilot is an effort to provide customers with faster delivery options, specifically for items that people often need quickly. The service is designed to cater to the high demand for immediate delivery in urban areas, where convenience and speed are crucial factors in consumer purchasing decisions. As part of this new venture, Amazon is reportedly onboarding dark stores in busy areas of Bengaluru and partnering with third-party logistics firms to ensure efficient delivery execution. By utilizing these logistics networks, Amazon aims to speed up the delivery process and enhance customer satisfaction in the competitive landscape of quick commerce.
Amazon’s entry into this space puts it in direct competition with well-established players like Blinkit, Swiggy Instamart, and Zepto. These companies have been aggressively scaling their operations to meet the growing demand for ultra-fast deliveries. For instance, Blinkit, Zepto, and Swiggy Instamart collectively generated a significant $1 billion in revenue in FY24, signaling the rapid expansion of the quick commerce sector. These companies have already developed strong brand recognition and user bases by offering customers the convenience of receiving groceries and other essentials within minutes of placing an order.
Swiggy, for example, recently launched its ‘SNACC’ app, specifically focused on ultra-fast food delivery, while Zomato and Zepto have implemented strategic changes, including splitting apps and planning IPOs, to capture a larger share of the market. This flurry of activity reflects the immense potential of the quick commerce market, which has been fueled by the growing demand for immediate deliveries, especially in India’s dense urban centers.
Amazon’s move to introduce ‘Tez’ comes as part of a broader trend in the Indian e-commerce and quick commerce industries, with several other platforms also testing similar services. Myntra, for example, has launched M-Now, while Nykaa has been experimenting with a quick delivery pilot of its own. These platforms, along with D2C (direct-to-consumer) brands such as Pilgrim and Rare Rabbit, are increasingly adopting quick commerce models to meet the evolving needs of Indian consumers who value convenience and speed.
In the face of stiff competition, Amazon’s entry into the quick commerce market could pose a significant challenge to its rivals, particularly in Bengaluru, a key urban market for many of these services. While Amazon has a strong brand presence and extensive logistical capabilities, its competitors have already established loyal customer bases and deep market penetration. Despite this, Amazon’s vast resources, logistical expertise, and reputation for innovation give it the potential to scale quickly and make a significant impact in this rapidly growing market.
The quick commerce sector in India has seen explosive growth in recent years, with consumers increasingly expecting faster and more convenient services for their everyday needs. Amazon’s ‘Tez’ could capitalize on this trend, offering customers a solution that combines speed with the convenience of its well-established e-commerce platform. As the service expands beyond the pilot phase, it will be interesting to see how Amazon’s offerings stack up against those of Blinkit, Swiggy Instamart, Zepto, and other emerging competitors.
The race for dominance in India’s quick commerce market is far from over, and with giants like Amazon now in the mix, the sector is set to become even more competitive. Whether Amazon’s ‘Tez’ can carve out a substantial share of the market remains to be seen, but its entry signals a significant step forward for the sector, further intensifying the competition and accelerating the pace of innovation in the quick delivery space.
