Amazon India plans to enter quick commerce market: Report

Amazon in quick commerce: Amazon is planning to enter the booming quick commerce market in India, competing directly with vertical giants such as Swiggy, Blinkit, and Zepto, according to media reports. 

The reports suggest that Nishant Sardana, the company leader responsible for smartphones and accessories, will be leading the expansion to the quick commerce category. 

Amazon is already offering quick grocery delivery services via Amazon Fresh to its customers, competing with Flipkart and BigBasket. However, the entry of a global e-commerce giant into the quick commerce industry will directly affect local market leaders.

Apart from Amazon, Tata-owned BigBasket has also announced a 100 per cent pivot to the quick commerce category with Flipkart also entering the space with Flipkart Minutes. 

The media reports previously suggested that Amazon is in talks with Swiggy to acquire its quick commerce arm Instamart. However, nothing has been announced so far from the companies. 

Zomato’s Blinkit is the segment topper with nearly 40-45 per cent market share as of July 2024, according to UBS. Second to Zomato stands Swiggy’s Instamart which accounts for 20-25 per cent market followed by Zepto and BigBasket which holds nearly 15-20 per cent and 10-15 per cent market share respectively. 

Buoyed by the strong response from the quick commerce category, Zomato recorded bumper results for the quarter ended June 2024 (Q1FY25). The company has reported 44.5 per cent growth in the net profit which surged to Rs 253 crore when compared to Rs 175 crore recorded in the the preceding quarter. 

The revenue of the company also rose 74 per cent on a YoY basis to Rs 4,206 crore in Q1FY25.