The move puts the e-commerce behemoth into in conflict with regional firms that already control the quick delivery market, including Swiggy, Instamart, Zepto, and Blinkit (owned by Eternal).
With delivery times as short as ten minutes, Amazon has entered New Delhi’s rapidly expanding fast commerce market.
Amazon is expanding its operations via Quick e-Commerce
The national capital is now the second city in India to have access to the lightning-fast delivery function after Bengaluru thanks to the e-commerce behemoth’s expansion of its “Now” service, according to Bloomberg.
With groceries, daily necessities, and electronics delivered in a matter of minutes, local businesses Blinkit (acquired by Zomato), Swiggy, Instamart, and Zepto already dominate the quick delivery market. This move puts Amazon in direct rivalry with these companies. These companies have created a market where Indian consumers, particularly those in big cities, now place a high value on speed.
In a statement on Thursday, Amazon said it was “excited with the initial customer response and positive feedback” for its Now service in Bengaluru. “Based on this, we’re now expanding the service over the next few months,” it added.
THE RISE OF QUICK COMMERCE IN INDIA
In India, quick commerce, or Q-commerce, has gained popularity as more urban consumers want dependable and quick delivery of daily goods. Grocery shopping has expanded to include a greater variety of goods, such as gadgets, snacks, medications, and even stationery.
This movement has been spearheaded by Blinkit, Zepto, and Swiggy Instamart, which have established dark storefronts and used hyperlocal logistics to reduce delivery times to less than 15 minutes in several locations. Larger companies like Amazon and Walmart-owned Flipkart have been forced to reconsider their distribution strategies as a result of the high demand and investor interest these platforms have generated.
One-day or two-day delivery was Amazon’s forte until recently. However, the increasing demand for 10- or 15-minute services, particularly from younger consumers and working professionals, has forced multinational e-commerce behemoths to follow suit.
AMAZON’S INDIA PLANS GET A BOOST
India is one of Amazon’s primary growth markets, and the corporation has been increasing its investment there rapidly. Since 2013, it has already invested more than $11 billion in the nation. Amazon revealed a new investment of Rs 1,943 crore (about $233 million) last month with the goal of developing infrastructure and growing its delivery network.
In an effort to increase delivery times in Tier 2 and Tier 3 cities as well as smaller villages, the company has also created five new fulfillment centers around India. It is anticipated that this expansion will help Amazon achieve its larger goals, which include increased reach and quicker deliveries during times of high demand, such as holiday sales.
Impact of this step on Competitors: –
The closest competitor of Amazon in India, Flipkart, made its debut in the fast commerce market last year with Flipkart “Minutes.” Currently, the service is available in 14 locations nationwide. The products offered by Flipkart are concentrated in areas like small gadgets, everyday household goods, and personal care.
Zepto and Blinkit are still concentrating on central cities where rapid delivery services are feasible due to their dense populations and large order volumes. In an effort to increase coverage and shorten delivery times, these businesses are also aggressively growing their networks of dark stores.
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