Amazon’s Bengaluru Blitz: 15-minute delivery shakes up QC; Swiggy, Zomato fall up to 4%

Shares of Swiggy and Zomato took a hit on December 11, 2024, after reports emerged that Amazon India plans to roll out a 15-minute delivery service in Bengaluru.

Swiggy’s shares dropped 4.25 per cent to Rs 520.45, while Zomato's fell 1.63 per cent to Rs 292.25 by 10:48 AM. Meanwhile, the BSE Sensex traded flat at 81,480.50, down 0.04 per cent.

According to Zee Business research, Amazon has been testing the service, reportedly named "Amazon Tez," to cater to the growing demand for ultra-fast delivery of essentials among urban consumers.

Amazon enters quick commerce with a global first

This initiative marks Amazon's maiden foray into 15-minute delivery on a global scale. The service, set to debut later this month in Bengaluru, will offer a selection of 1,000-2,000 products, including groceries and household items. The company plans to expand this service to other cities soon.

With this move, Amazon becomes the sixth significant player in India’s quick commerce market, which generates over $6 billion annually and is predominantly active in 24 cities. Leading players in this space include Zomato’s BlinkIt, Swiggy Instamart, and Zepto, backed by Nexus Ventures.

Quick commerce in India: a high-stakes battleground

The quick commerce sector in India has witnessed rapid growth, driven by the increasing adoption of app-based grocery shopping. Players have invested heavily in logistics and tech to reduce delivery times. Amazon’s entry, with its vast logistical network and expertise in e-commerce, is expected to intensify competition.

Amazon's Indian journey: from books to quick commerce

Amazon India launched in 2013, started as an online bookseller before diversifying into various product categories, including electronics, groceries, and fashion. Headquartered in Bengaluru, the e-commerce giant has invested significantly in its supply chain to offer services like same-day delivery. Its new 15-minute delivery service underscores its commitment to leveraging global expertise to capture India's evolving consumer demands.

With Amazon ramping up its presence, the quick commerce market is poised for a fierce battle as incumbents brace for a potential shakeup.