Amazon plans to launch quick commerce in India by December: Here’s what we know

Amazon is accelerating the launch of its quick commerce service in India, codenamed Tez, aiming for a rollout by late December or early 2024. Initially planned for the first quarter of 2025, this move signals Amazon's rapid response to the booming $5.5-6 billion quick commerce sector, currently dominated by Blinkit, Zepto, and Swiggy Instamart.

Launch Timeline

Amazon's entry into quick commerce will focus on groceries and daily essentials. The project involves establishing dark stores, finalizing stock-keeping units (SKUs), and developing logistics for ultra-fast deliveries. The launch date might be confirmed during a December review meeting before Amazon’s annual Smbhav event on December 9-10.

To support this initiative, Amazon is recruiting talent and assembling a core team. The India Grocery and Everyday Essentials team described the project as an "initiative for an upcoming and fast-growing e-commerce space" in a job posting.

Competition

Amazon’s foray into quick commerce intensifies the competition, especially with Flipkart launching its Minutes service ahead of the festive season, BigBasket reporting over ₹900 crore in gross sales last month, and Tata Digital introducing its Neu Flash service in October.

According to Morgan Stanley, the quick commerce market could surpass food delivery in gross order value (GOV) by 2026, potentially reaching $25 billion to $55 billion by 2030. This growth is driven by high-frequency, high-value users.

In 2024, quick commerce grossed nearly $7 billion, with significant traction in app downloads compared to traditional e-commerce platforms.

What’s Next for Amazon India?

As Amazon finalizes Tez, it will leverage its extensive delivery network and logistics partnerships to meet the demands of quick commerce users in India. Success in this highly competitive market will depend on Amazon's execution and ability to capture a significant market share.