Amazon has started rolling out its 10-minute delivery service, Amazon Now, in a few Bengaluru localities, moving beyond an employee-only pilot. More areas will be added in the coming weeks, people in the know said.
Internally codenamed ‘Tez’, Amazon is engaging with brands in beauty, home, and kitchen categories as part of the scale-up plan.
"We are in talks to onboard with them (Amazon) and should be live by March-April after they stabilise grocery and daily essentials. Beauty and home are the next focus areas," said a senior executive of a brand, which also sells on other quick commerce platforms.
Currently, Amazon is largely selling grocery and other daily essentials, per ET’s review of the service.
A spokesperson for Amazon India confirmed the rollout.
Amazon’s entry, though relatively late, has been in the works for months even as the sector continued to see competition swelling. ET first reported its plans in August, followed by a detailed strategy report in November.
The sector is projected to grow from $21 billion to $31 billion by fiscal 2027, according to a February 10 report from Citi Research, which said quick commerce firms are carrying well over 20,000 SKUs (stock-keeping units), underscoring how the width of products available for 10-15-minute deliveries is increasing steadily.
Amazon Now has entered the space when Flipkart is scaling up its Minutes service aggressively. Since the launch last August, it has grown to 120-150 dark stores and aims to reach 500-550 by its Big Billion Days sale this year, ET reported on February 7. With 300 stores expected by March, Flipkart is adding high-value categories like electronics, appliances and smartphones for quick delivery. It has also launched medicine delivery, which Swiggy Instamart too has done through a partnership with PharmEasy.
Changing dynamics
Ecommerce majors Amazon and Flipkart are jostling for a pie of the market when Swiggy Instamart is facing increased competition from Zomato-owned Blinkit and Zepto in defending its No.2 position in the space.
While Swiggy has doubled its dark store footprint in 2024, Citi Research noted it has been “slow to acknowledge the large opportunity” and is now “playing catch-up”. Blinkit has more than doubled its dark store network in the past year, solidifying its lead.
The Citi report estimated Blinkit’s market share at 41% and Swiggy’s at 23%. Both Blinkit and Zepto have surpassed targeted dark stores — 1,000 and 900, respectively—ahead of planned timelines. Swiggy has over 800 dark stores, as of last month.
Citi Research also flagged concerns on profitability, with platforms prioritising market share over short-term margins. “We expect Swiggy to focus on growth investments in QC through FY26, given the need to close the gap on selection/footprint vs competition,” the Citi note said.
Based on earnings data and public announcements, Blinkit has an annualised gross sales run rate of $3.7 billion, compared with $3 billion for Zepto and $1.8 billion for Instamart.
A report from Bofa Securities dated February 6 also said it expects competition to continue to increase in quick commerce for the next three to six months.
The Bofa report also projected the quick commerce sector to grow from $21 billion now to $31 billion by FY27 under a bull case scenario, accounting for 2.4% of the country’s retail market, up from 1.7% currently.
Internally codenamed ‘Tez’, Amazon is engaging with brands in beauty, home, and kitchen categories as part of the scale-up plan.
"We are in talks to onboard with them (Amazon) and should be live by March-April after they stabilise grocery and daily essentials. Beauty and home are the next focus areas," said a senior executive of a brand, which also sells on other quick commerce platforms.
Currently, Amazon is largely selling grocery and other daily essentials, per ET’s review of the service.
A spokesperson for Amazon India confirmed the rollout.
Amazon’s entry, though relatively late, has been in the works for months even as the sector continued to see competition swelling. ET first reported its plans in August, followed by a detailed strategy report in November.
The sector is projected to grow from $21 billion to $31 billion by fiscal 2027, according to a February 10 report from Citi Research, which said quick commerce firms are carrying well over 20,000 SKUs (stock-keeping units), underscoring how the width of products available for 10-15-minute deliveries is increasing steadily.
Amazon Now has entered the space when Flipkart is scaling up its Minutes service aggressively. Since the launch last August, it has grown to 120-150 dark stores and aims to reach 500-550 by its Big Billion Days sale this year, ET reported on February 7. With 300 stores expected by March, Flipkart is adding high-value categories like electronics, appliances and smartphones for quick delivery. It has also launched medicine delivery, which Swiggy Instamart too has done through a partnership with PharmEasy.
Changing dynamics
Ecommerce majors Amazon and Flipkart are jostling for a pie of the market when Swiggy Instamart is facing increased competition from Zomato-owned Blinkit and Zepto in defending its No.2 position in the space.
While Swiggy has doubled its dark store footprint in 2024, Citi Research noted it has been “slow to acknowledge the large opportunity” and is now “playing catch-up”. Blinkit has more than doubled its dark store network in the past year, solidifying its lead.
The Citi report estimated Blinkit’s market share at 41% and Swiggy’s at 23%. Both Blinkit and Zepto have surpassed targeted dark stores — 1,000 and 900, respectively—ahead of planned timelines. Swiggy has over 800 dark stores, as of last month.
Citi Research also flagged concerns on profitability, with platforms prioritising market share over short-term margins. “We expect Swiggy to focus on growth investments in QC through FY26, given the need to close the gap on selection/footprint vs competition,” the Citi note said.
Based on earnings data and public announcements, Blinkit has an annualised gross sales run rate of $3.7 billion, compared with $3 billion for Zepto and $1.8 billion for Instamart.
A report from Bofa Securities dated February 6 also said it expects competition to continue to increase in quick commerce for the next three to six months.
The Bofa report also projected the quick commerce sector to grow from $21 billion now to $31 billion by FY27 under a bull case scenario, accounting for 2.4% of the country’s retail market, up from 1.7% currently.
