Amazon’s Tez Prepares to Enter the Quick-Commerce Race

In the bustling landscape of Indian e-commerce, a new battle is brewing. Amazon India is preparing to launch Tez as per media reports. This ambitious quick commerce service aims to carve out a space in a market that’s moving faster than ever before.

The timing couldn’t be more critical. Morgan Stanley predicts the quick commerce market could explode to $40 billion by 2030, with projections suggesting it might even surpass food delivery by 2026. For Amazon, this represents an unmissable opportunity to expand its footprint in one of the world’s most dynamic digital economies.

Initially planned for the first quarter of 2025, Amazon has accelerated Tez’s launch to late 2024, sensing the urgency of the moment. The company is treating this as a “greenfield, grounds-up” project, meticulously building teams and establishing logistics infrastructure. Dark stores are being set up, with an initial focus on groceries and essential goods – the lifeblood of quick commerce.

Amazon’s entry comes at a fascinating time for the company in India. In fiscal year 2024, the company saw a 14% revenue increase to Rs 25,406 crore, with a significant 28% reduction in losses. These financial improvements provide a solid foundation for the Tez venture.

The quick commerce landscape

The competitive landscape is already heated. Flipkart has its Minutes service, Tata’s BigBasket has transformed its model to quick delivery, and startups like Zepto and Blinkit are flush with investor cash. Zepto recently raised $350 million, pushing its cash reserves over $1 billion, while Blinkit secured shareholder approval for an additional $1 billion fundraise.

The quick commerce market is already impressive, with gross sales hitting $5.5-6 billion monthly. What makes this sector so attractive is its high-frequency users – about one-third of the customer base that’s projected to contribute 75-80% of the market value by 2030.

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For Amazon, Tez represents a strategic move to establish a strong presence in India’s fastest-growing online business sector. The company is investing heavily in understanding local market dynamics, building robust logistics networks, and creating a service that can compete with nimble local players.

The strategy involves more than just speed. It’s about creating a seamless, technology-driven experience that can win customer loyalty in an increasingly competitive market. From intelligent inventory management to predictive delivery algorithms, Tez is being designed as a next-generation quick commerce platform.

Cost management is also a key focus. Amazon is simultaneously optimizing its operations, including relocating its Bengaluru headquarters to reduce expenses. Every rupee saved is a rupee that can be invested in building out the Tez infrastructure.

As the launch approaches, the industry watches with bated breath. Can Amazon, a global e-commerce giant, successfully navigate the unique challenges of India’s quick commerce market? With Tez, they’re betting big on their ability to adapt, innovate, and deliver – quite literally.

The race is on, and the stakes have never been higher.