Amazon poised to shake up India’s quick commerce market

India’s e-commerce landscape is abuzz with a new battleground—quick commerce. This rapidly growing segment focuses on delivering essentials such as groceries and medicines at lightning speed. Dominated by players like Blinkit, Swiggy Instamart, and Zepto, the market is set for a major shakeup as Amazon prepares to enter with its own service, reportedly named Tez.

Amazon is accelerating plans to launch Tez by the end of this year or early next year, ahead of its previously scheduled Q1 2025 rollout. This move aims to capture a share of the booming $3.35 billion market, as per reports.

Tez will focus initially on groceries and daily essentials, utilizing dark stores, robust stock-keeping units (SKUs), and an upgraded logistics network. Discussions at Amazon’s upcoming December review meeting, coinciding with its Smbhav event, are expected to finalize details. Recruitment efforts for this initiative are already in progress, signalling Amazon’s intent to establish itself in a market where it currently lacks a presence.

If successful, Tez will mark Amazon’s first global venture into quick commerce, highlighting the strategic importance of India in its growth plans.

Quick commerce in India is growing at a breakneck pace, driven by customer demand for convenience and ultra-fast deliveries. According to a Morgan Stanley report, the market could expand to $25–$55 billion by 2030, with frequent users driving the bulk of its value.

The sector is even projected to surpass food delivery in gross order value by 2026, making it a critical focus area for e-commerce giants.

Amazon’s entry will intensify competition in a space already crowded with strong players:

Blinkit (Owned by Zomato): Blinkit’s sales doubled in the September quarter compared to last year, growing six times faster than Zomato’s core food delivery business.

Swiggy Instamart: Since its 2020 debut, Instamart has scaled operations to 43 cities, slashing delivery times to under 13 minutes.

Zepto: With a $350 million funding boost, Zepto is valued at $5 billion, strengthening its position in the quick commerce race.

Flipkart (Minutes): Amazon’s chief rival Flipkart launched its Minutes service earlier this year, rapidly expanding to key cities.

BigBasket and Tata Neu Flash: Both are carving out niches with quick delivery models and leveraging their existing customer bases.

So, what’s at stake? Amazon’s financial clout could lead to aggressive discounting, but rivals like Blinkit emphasize service quality over price wars. The quick commerce sector is also poised for innovations, such as shorter delivery times and broader product categories.

While the entry of a global giant like Amazon could revolutionize the market, sustainability remains a question. Indian companies may need to avoid the pitfalls seen in the U.S., where high operational costs led to the collapse of several quick commerce startups.