Amazon is entering the 15-minute delivery race: A danger to Blinkit, Zepto, and Swiggy Instamart?

News Mania Desk / Piyal Chatterjee / 11th December 2024

Amazon is making a big move into India’s burgeoning rapid commerce industry, promising to deliver basic essentials in 15 minutes or less. The test program will launch in Bengaluru later this month, bringing competition to a market already dominated by Blinkit, Zepto, and Swiggy Instamart.

Samir Kumar, Amazon India’s national manager, revealed the change at the company’s annual event, Smbhav, in Delhi. He emphasized Amazon’s emphasis on “selection, value, and convenience,” adding that the test experiment is intended to address the demand for faster deliveries. However, the service’s name—rumored to be “Tez”—has yet to be confirmed.

To support its operations, the company wants to deploy dark stores, which are small warehouses that only fulfill online purchases. While Amazon has not stated how many dark stores will be opened or other cities will follow Bengaluru, insiders believe that future expansion will be dependent on the pilot’s success.

Quick commerce is rapidly gaining pace in India, owing to shifting customer behaviour and an increasing desire for speed and convenience. According to a Meta research, 91% of Indian online consumers are aware of rapid commerce platforms, with more than half having utilized them recently.

According to the survey, 57% of consumers are increasing their spending on rapid commerce platforms, with food and personal care products driving the trend. Unlike traditional e-commerce, which is commonly linked with fashion and gadgets, rapid commerce focuses on basic necessities that people require right away.The grocery market has profited the most from this trend, as consumers increasingly rely on rapid commerce platforms to restock fresh produce, dairy, and other basics. This is a big shift, as traditional e-commerce typically requires lengthier delivery dates for such commodities.

Amazon’s arrival has the potential to disrupt current market leaders such as Blinkit, Zepto, and Swiggy Instamart. These players have relied significantly on their established networks and first mover advantage. Amazon, with its financial resources, client base, and logistics skills, might offer a serious challenge to their dominance. However, this will not be easy. Quick commerce necessitates faultless execution—efficient delivery systems, effective inventory management, and competitive pricing. Any blunders could make it harder for Amazon to gain traction in a market where others currently dominate.