Big trouble for Blinkit, Zepto as this company gets ready to enter quick commerce market, its name is…, not owned by Mukesh Ambani

Quick commerce companies such as Blinkit, Zepto, and Swiggy Instamart are set to face a new challenger as a multinational company plans to enter the Indian quick commerce market soon.

The American multinational technology company, which also dominates the global e-commerce market, Amazon, is planning something that could spell trouble for Blinkit and Zepto. The company is reportedly planning to launch its quick commerce service, code-named Tez. Amazon has already started working on the initiative and is expected to launch it by early next year, according to news agency Reuters.

As per sources cited in the report, this move will see Amazon entering the rapidly growing quick commerce space in India, where Blinkit, Zepto, and Swiggy Instamart currently dominate the market.

It is noteworthy that, the quick commerce sector is expected to reach a market size of nearly USD 7 billion by the end of this year.

Amazon’s TEZ

Amazon initially planned to launch Tez in the first quarter of the coming year, but the launch is expected soon. However, the launch date of Tez is expected to be finalised during the December review meeting.

Amazon is gearing up to primarily concentrate on delivering groceries and everyday essentials; they’re closely following a game plan similar to their competitors. They are busy laying the groundwork for dark stores, managing inventory units (SKUs), and shaping up the logistics needed for quick deliveries. On top of that, they’ve kick-started their hiring process for this new venture.

Quick Commerce Sector And Growing Competition

• Amazon is entering a competitive market in India, facing established rivals.
• Flipkart launched a rapid ‘Minutes’ commerce service in major cities earlier this year.
• Tata Group has introduced Neu Flash, an express commerce service via the Tata Neu app.
• BigBasket, owned by Tata, reported over Rs 900 crore in gross sales for October after shifting to a fast-track commerce model.
• Zepto has raised $350 million, surpassing a $1 billion valuation, while Zomato’s Blinkit is set to raise an additional $1 billion through QIP.

Indian Quick Commerce Market And Its Potential

• Morgan Stanley forecasts the speedy-commerce sector to grow between $25 billion to $55 billion by the end of the decade.
• The growth is driven by an increasing number of homes utilizing ultra-quick delivery services and their frequent ordering habits.
• High-frequency users currently make up one-third of users but are expected to represent 75% to 80% of the market’s total value by 2030.
• The quick commerce sector is anticipated to surpass food delivery in Gross Order Value (GOV) within the next five years.
• This projected growth positions quick commerce as a key focus area for e-commerce businesses.