Friday, January 17, 2025
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E-commerce giant Amazon is set to enter the fast-growing quick commerce market in India with its new service, codenamed “Tez.” This move aims to compete with established players like Blinkit, Zepto, and Swiggy Instamart, who have already made significant strides in the ultra-fast delivery segment.

Initially planned for the first quarter of 2025, Amazon has accelerated its timeline and is now targeting a launch as early as late December or early January. The service is expected to focus on delivering groceries and daily essentials, leveraging Amazon’s existing infrastructure and logistics capabilities.

To support this initiative, Amazon is establishing dark stores and optimizing its supply chain to ensure rapid order fulfillment. The company is also actively hiring staff to manage operations and customer service.

The quick commerce market in India is witnessing rapid growth, with projections suggesting that it could reach a value of $25 billion to $55 billion by 2030. The increasing adoption of smartphones, coupled with rising disposable incomes and changing consumer preferences, has fueled the demand for convenient and fast delivery services.

However, Amazon’s entry into this competitive market presents both opportunities and challenges. The company will need to differentiate itself from existing players by offering unique value propositions, such as competitive pricing, wider product selection, and exceptional customer service.

While Amazon’s strong brand reputation and deep pockets could give it a competitive edge, it will face stiff competition from well-established players who have already built a strong customer base and optimized their operations.

As Amazon prepares for the launch of Tez, it is also undergoing organizational changes in India. Samir Kumar, a seasoned executive, has taken over as the head of Amazon India, replacing Manish Tiwary. Additionally, the company is relocating its Bengaluru headquarters to a new facility closer to the airport, aiming to reduce operational costs.

The quick commerce market in India is poised for significant growth, and Amazon’s entry is expected to further intensify competition and drive innovation in the sector.

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