MediaNama’s Take: Amazon is intensifying its push into quick commerce, betting that 10-15 min delivery of groceries and daily essentials will be the next engine of growth. The shift reflects both growing consumer preference for convenience and intensifying competition for market share.
Quick commerce, powered by small “dark stores” in densely populated neighbourhoods, is a key driver of revenue for the likes of Blinkit, Zepto and Swiggy Instamart, which currently dominate the industry. Blinkit contributed 33% of Eternal’s sales in Q1FY26, while Instamart accounted for 16% of Swiggy’s sales during the same period.
Interestingly, a recent Bain & Company and Flipkart report suggests that over two-thirds of online grocery orders and 10% of online retail spending came through quick commerce apps in 2024. Furthermore, Morgan Stanley now pegs the total addressable market (TAM) for India’s quick commerce industry at $57 billion, a more than 35% increase from its previous forecast of $42 billion.
So, it’s only natural that the world’s biggest retailer is doubling down on ‘Amazon Now’, aiming to grab a bigger bite of India’s quick commerce pie. However, some would argue that the company is a tad late to the game.
What’s the News
Amazon announced on Thursday that it has expanded its 10-minute delivery service, Amazon Now, to select parts of Mumbai. With this, the e-commerce giant has added a third city to its quick commerce portfolio, after launching its service to Bengaluru in June and later expanding it to Delhi.
The e-commerce giant said it has set up more than 100 dark stores across the three cities to enable 10-minute deliveries, with plans to add “hundreds more by year-end” as order volumes on the platform grow 25% month-on-month.
“We launched Amazon Now in Bengaluru earlier this year, delivering essentials in just 10 minutes. The response has exceeded our most optimistic expectations, with daily orders growing at 25% month over month and Prime members tripling their shopping frequency after they begin using Amazon Now,” said Samir Kumar, Vice President and Country Manager, Amazon India.
An Opportunity Overlooked by Amazon?
Amazon entered the Indian market over a decade ago, investing more than $11 billion to build and scale its e-commerce offering. But 12 years on, the Indian e-commerce giant has barely made a dent in the overall $1.4 trillion retail market, growing at less than 15% yearly.
Put two and two together and you will find yourself asking yet another significant question: can Amazon just swoop in and dominate India’s extremely crowded quick commerce market, threatening the cosy triopoly of Blinkit, Zepto and Instamart?
According to a Moneycontrol report, Blinkit continues to be the market leader in the quick commerce space with a 52% share in terms of net merchandise value (NMV) during the week of August 4-11 this year. With a 25% market share, Swiggy’s…
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