Amazon India set to enter quick commerce with Tez launch

26 November 2024, Mumbai

Amazon India is expediting plans to launch its quick commerce service, codenamed Tez, by late December or early 2025. This move marks Amazon’s first venture into the ultra-fast delivery market globally, a sector estimated to reach $7 billion in 2024.

Initially planned for Q1 2025, the rollout has been accelerated to compete with established players like Blinkit, Zepto, and Swiggy Instamart. Amazon is also addressing its lack of presence in India’s rapidly growing quick commerce space, which has already reached monthly gross sales of $5.5–6 billion.

Tez, a working title, will primarily focus on groceries and daily essentials, leveraging dark stores and advanced logistics infrastructure. Amazon has engaged logistics partners alongside its delivery network and is actively hiring talent for the high-priority project.

Rival Flipkart launched its quick commerce service, Minutes, earlier this year, while Tata’s BigBasket and Neu Flash are expanding in the segment. Zepto and Zomato-owned Blinkit have also secured significant funding for growth.

Morgan Stanley projects India’s quick commerce market to reach $25–55 billion by 2030, overtaking food delivery in gross order value by 2026.

This launch aligns with broader changes in Amazon India, including cost-cutting measures and new headquarters in Bengaluru. The company’s FY24 revenue grew 14 per cent to Rs 25,406 crore, with a 28 per cent reduction in losses to Rs 3,469 crore. However, growth rates remain below the pandemic-era highs.

Amazon’s Tez aims to capture a share of the burgeoning market as consumer demand for ultra-fast delivery accelerates.

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