Amazon Tez: E-commerce Giant's Quick Commerce Debut Set for December

Amazon India is gearing up to unveil its quick commerce service, codenamed Tez, by late December or early 2024. This move marks Amazon's first foray into the global quick commerce sector, a $5.5-$6 billion industry currently dominated by Blinkit, Zepto, and Swiggy Instamart.

Tez, focusing on groceries and daily essentials, is Amazon's response to the rapid expansion of quick commerce in India. The company is reportedly finalizing logistics infrastructure, including dark stores and SKU management, to facilitate ultra-fast deliveries. The project will be reviewed in December, just ahead of Amazon’s annual Smbhav event scheduled for December 9-10.

Amazon has already assembled a core team and is actively recruiting talent for this initiative, which is described internally as a "greenfield, ground-up project targeting India's fast-growing e-commerce space."

Rising Competition in Quick Commerce

Amazon’s entry comes amidst fierce competition. Flipkart launched its quick commerce service, Minutes, during the festive season, while BigBasket's pivot to the model brought in over ₹900 crore in gross sales last month. Tata Digital also launched Neu Flash, intensifying the race in the segment.

According to a recent Morgan Stanley report, quick commerce is projected to surpass food delivery in gross order value (GOV) by 2026. Analysts estimate the market could grow to between $25 billion and $55 billion by 2030, driven by increasing demand for high-frequency, high-value purchases.

Challenges and Opportunities

Tez will leverage Amazon's robust delivery network and logistics expertise to meet the expectations of Indian consumers. However, the success of this venture hinges on its ability to compete with well-entrenched players offering similar services.

Amazon’s entry signifies the growing significance of quick commerce, as players vie to capture a share of this burgeoning market. With its strategic rollout of Tez, Amazon aims to redefine ultra-fast delivery standards in India’s dynamic e-commerce landscape.

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