Amazon has entered India’s burgeoning quick commerce sector with its new service, Amazon Now, internally codenamed “Tez.” This initiative aims to deliver groceries and daily essentials to customers within 10 to 15 minutes, positioning Amazon alongside established players like Blinkit, Zepto, and Swiggy Instamart.afaqs!+3The Economic Times+3Storyboard18+3
Launch Timeline and Pilot Testing
- December 2024: Amazon commenced pilot testing of Tez in select pin codes of Bengaluru, involving Amazon employees to refine operational efficiencies before a broader public launch. Inc42 Media
- February 2025: The service expanded beyond internal testing, rolling out to additional areas in Bengaluru under the brand name Amazon Now. themarketingaxis.com+5The Economic Times+5Storyboard18+5
Operational Strategy
- Delivery Promise: Amazon Now offers deliveries in as little as 10 minutes, focusing initially on groceries and daily essentials. afaqs!
- Dark Stores: To facilitate rapid deliveries, Amazon is establishing a network of dark stores—localized warehouses designed to optimize inventory management and streamline delivery processes.
- Third-Party Logistics: The company is engaging with third-party logistics providers to bolster its delivery capabilities.
Product Categories and Expansion Plans
- Initial Focus: The service began with groceries and daily essentials.
- Future Expansion: Amazon plans to expand Amazon Now’s offerings to include beauty, home, and kitchen products, engaging with brands in these categories for integration following the stabilization of grocery operations. The Economic Times
Market Context
- Industry Growth: India’s quick commerce industry is expected to cross $6 billion in annual sales in 2024, up from just $100 million in 2020. Reuters
- Competitor Activity: Flipkart is aggressively expanding its dark store network, aiming to increase from 120-150 to 500-550 by the Big Billion Days sale, incorporating high-value categories like electronics and smartphones into its quick delivery model.
Conclusion
Amazon’s introduction of Amazon Now signifies a strategic move to capture a share of India’s fast-growing quick commerce market. By focusing on ultra-fast deliveries and expanding product categories, Amazon aims to provide enhanced convenience to its customers and compete effectively with existing market leaders.