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Amazon India to Launch ‘Tez’: Will It Revolutionize 20-Minute Grocery Deliveries

  • November 25, 2024
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Amazon India is preparing to launch its highly anticipated quick commerce service, codenamed Tez, which will focus on fast deliveries of groceries and daily essentials. The company plans

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Amazon India to Launch ‘Tez’: Will It Revolutionize 20-Minute Grocery Deliveries

Amazon India is preparing to launch its highly anticipated quick commerce service, codenamed Tez, which will focus on fast deliveries of groceries and daily essentials. The company plans to roll out the service by late December or early next year, marking Amazon’s first-ever entry into the quick commerce space globally.

This move comes at a time when quick commerce, the fast-growing segment of ultra-fast delivery services, is taking off in India, with players like Blinkit, Swiggy Instamart, and Zepto already dominating the market.


What is Amazon Tez?

Amazon’s quick commerce service, Tez, is set to compete directly with existing players in the Indian market who are offering rapid deliveries, typically within 20-30 minutes. The goal is to make shopping for groceries, snacks, and daily essentials as quick and convenient as possible. While the final name for the service is still under wraps, the company is already putting plans in motion to make it a reality.

Tez will leverage Amazon Fresh, Amazon India’s existing grocery delivery platform, to make sure products reach customers in record time. The quick commerce model is built on dark stores (small warehouses located closer to customers) and efficient logistics networks, enabling Amazon to fulfill orders rapidly and offer better stock availability for grocery and daily essentials.


Amazon’s Big Move into Quick Commerce

This is a significant step for Amazon India, as it marks the company’s global debut in the quick commerce space. Quick commerce, which involves delivering products in 30 minutes or less, has become a major growth area for e-commerce companies worldwide.

Reports suggest that the Tez launch will be discussed during Amazon India’s monthly review meeting in early December, ahead of its annual Smbhav event. According to sources, the project is a top priority for the company, with Amazon actively working with both internal and external stakeholders to get the service up and running.

“This is a greenfield initiative,” an Amazon job post noted, referring to the project as a “ground-up” development for India’s rapidly growing quick commerce sector.

What Makes Tez Different?

While Amazon India already has a well-established delivery network, the company is now focusing on scaling up its grocery and essentials supply chain to cater specifically to the quick commerce demand. The company aims to offer faster delivery options, especially for products like groceries, fresh produce, and household items.

Amazon is also focusing on creating dedicated “dark stores”—small, local warehouses that store high-demand items and are strategically placed close to major customer hubs. This model allows Amazon to reduce delivery times to as low as 20-30 minutes, similar to what competitors like Blinkit and Zepto are already doing.

As part of its strategy, Amazon is also engaging with external logistics providers to ensure seamless and quick deliveries. Additionally, Amazon India has been expanding its Amazon Fresh service, which now operates in 130 cities across India, up from about 50 cities a year ago.


Amazon’s Competition in the Quick Commerce Space

Amazon’s foray into the quick commerce space comes at a time when the market is already booming. Competitors like Blinkit, Swiggy Instamart, and Zepto have seen impressive growth, collectively reporting over $1 billion in revenue for FY24. The quick commerce segment in India has grown by a whopping 280% over the past two years, highlighting the rapid shift in consumer preferences toward faster deliveries.

  • Blinkit, a leader in the quick commerce space, has been delivering groceries within minutes, and it’s one of the first movers in this market.
  • Zepto and Swiggy Instamart are also growing rapidly, tapping into the demand for ultra-fast grocery delivery.

Not to be left behind, Flipkart—Amazon’s biggest rival in India—has already launched its own quick commerce service called “Minutes”. The service promises deliveries in as little as 10 minutes for certain products. Similarly, BigBasket, owned by Tata, is also shifting toward a quick-commerce-only model, transitioning from its traditional slotted delivery system to a more on-demand model in the coming months.

How Amazon Plans to Compete with Rivals

So, what will set Tez apart from the competition?

  • Amazon’s Global Logistics Network: With its vast network of fulfillment centers, transportation infrastructure, and established delivery systems, Amazon already has a significant advantage when it comes to scaling quick commerce. This allows Amazon to offer more reliable and wider-reaching delivery options compared to some of the smaller, more regionally-focused competitors.
  • Amazon Fresh Integration: With its grocery service already available in over 130 cities, Amazon is better positioned to scale its quick commerce service, offering not just groceries, but also daily essentials, fresh produce, and other popular products in high demand.
  • Prime Membership Integration: Amazon may use its already-successful Prime membership program to offer exclusive benefits for quick commerce, such as free or faster delivery options for members, giving it an edge over competitors.
  • Brand Trust and Customer Base: Amazon has a massive, loyal customer base in India, and the launch of Tez could attract millions of consumers who are already familiar with the platform for other purchases. Amazon’s reputation for customer service and reliability will likely be a major selling point in this new, fast-growing segment.

Looking Ahead: The Future of Quick Commerce in India

The quick commerce sector in India is still relatively new, but it’s growing fast. As consumer preferences shift toward on-demand, ultra-fast deliveries, more players—like Amazon—are expected to enter the market, intensifying the competition.

For Amazon, this is a big opportunity to capture a share of the fast-growing grocery and essentials delivery market, especially as more people in urban India prefer the convenience of quick, contactless shopping. With a strong logistics network, an expanding grocery service, and its well-established brand name, Amazon is positioning itself as a serious contender in the quick commerce race.

But with competitors like Blinkit, Swiggy Instamart, and Zepto already carving out significant market share, Amazon will need to act fast and deliver on its promise of speed, reliability, and convenience if it wants to stand out in the crowded quick commerce space.


Conclusion: Is Amazon Ready to Take on the Quick Commerce Giants?

With Tez set to launch soon, Amazon India is entering the highly competitive and rapidly growing world of quick commerce. Whether the e-commerce giant can outpace its rivals in this new space will depend on its ability to scale quickly, deliver efficiently, and win over customers with its trusted brand. With Amazon’s resources, logistical capabilities, and deep understanding of the Indian market, the launch of Tez could very well be a game-changer for the future of grocery and essential deliveries in India.


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