As the competition in India's quick commerce sector intensifies, Amazon is set to join the race. The e-commerce giant is reportedly gearing up to launch its quick commerce delivery service, currently under the codename Tez, by late December or early next year, as per a Reuters report.

This move will allow Amazon to enter a rapidly growing market, which saw gross sales of $5.5-6 billion this month, fuelled by companies like Blinkit, Zepto, and Swiggy Instamart.

Originally, Amazon had planned to launch the service in the first quarter of 2025, but the timeline has been accelerated as the company aims to secure a foothold in India's fastest-growing online sector, where it currently has no presence, according to the report.

Amazon Eyes Quick Commerce Boom in India

The quick commerce segment, which specializes in the rapid delivery of groceries and daily essentials, is expected to experience significant growth. If launched, Tez would mark Amazon's first global foray into quick commerce.

Discussions regarding the initiative are slated to take place during Amazon's monthly review meeting in early December, just before its annual Smbhav event, according to the report. In the meantime, the company has started hiring talent for this high-priority project, with its India grocery and essentials team describing it as a "ground-up initiative in a fast-growing e-commerce sector."

The launch will likely follow a similar approach to Amazon's competitors, initially concentrating on groceries and everyday essentials. To facilitate the operations, Amazon is establishing dark stores, managing stock-keeping units (SKUs), and upgrading its logistics infrastructure.

Potential of Quick Commerce Market in India

A Morgan Stanley report suggests that India's quick commerce market could grow to between $25 billion and $55 billion by 2030, depending on growth conditions. The report notes that high-frequency users, who make up about one-third of the current customer base, are expected to account for nearly 75-80 percent of the market value by 2030.

Additionally, the sector is forecasted to outpace food delivery in gross order value by 2026, solidifying its importance for e-commerce companies. With Amazon entering the market, the competitive environment is poised to become even more dynamic.

Rising Competition in Quick Commerce Market

Amazon is entering the quick commerce space as its competitors continue to grow. Flipkart, Amazon's main rival, launched its Minutes quick-commerce service earlier this year and has quickly expanded it across key cities. Meanwhile, the Tata Group has made strides with Neu Flash through its super app, Tata Neu, and BigBasket has shifted to the quick-commerce model, with gross sales surpassing Rs 900 crore in October.

As the sector evolves, the involvement of major players like Amazon is likely to shape the future of fast delivery services in India, potentially driving innovation and enhancing customer experiences in the years to come.