Amazon Enters Quick Commerce: With Tez Planning Challenges Blinkit and Zepto
Amazon India is preparing to launch its quick commerce service, “Tez,” to compete with established players like Blinkit, Zepto, Swiggy Instamart, and Flipkart Minutes. This move reflects Amazon’s strategic push into the rapidly expanding quick commerce market, a sector growing due to increasing consumer demand for ultra-fast delivery of groceries, essentials, and other small-scale orders.
Key Highlights:
- Strategic Positioning: Amazon’s existing grocery delivery platform, Amazon Fresh, operates on a scheduled delivery model. Tez is expected to pivot towards instant deliveries, a model where players like Blinkit dominate with a 40-45% market share
- Leadership and Operations: Amazon has tasked senior executive Nishant Sardana to oversee the Tez initiative. This comes amidst a leadership reshuffle, including the departure of country manager Manish Tiwary, marking a significant reorganization in Amazon India’s operations
- Market Dynamics: The quick commerce market in India has seen a surge in competition. Blinkit, backed by Zomato, leads the segment, followed by Swiggy Instamart, Zepto, and BigBasket. Reports suggest Amazon might even consider acquisitions to strengthen its position, including potential interest in Swiggy Instamart
- Timing and Expansion: Tez is expected to roll out by early 2025, aligning with Amazon’s strategy to enhance its portfolio and compete aggressively in India’s e-commerce landscape
Potential Implications:
- Consumer Experience: If integrated with Amazon’s Prime ecosystem, Tez could redefine convenience for customers by combining ultra-fast delivery with loyalty perks.
- Competitive Pressure: Rivals like Blinkit and Zepto may face heightened competition, pushing them to innovate further in delivery speeds, pricing, or service quality.
- Market Expansion: With Amazon’s significant resources and customer base, Tez could drive rapid adoption of quick commerce across tier-2 and tier-3 cities.