E-commerce leader Amazon India is set to enter the fast-growing quick commerce segment with a pilot service in Bengaluru, moving straight into competition with players such as Swiggy Instamart, Blinkit and Zepto, which have swiftly made inroads into this quick delivery market. The pilot is a big critical step in their overall vision for expanding their operational reach to every pin code in the country was said by an Amazon official.
PC: The Economic Times
The quick commerce model that Amazon will operate will bring all manner of everyday essentials right onto customers’ doorsteps, within 15 minutes, or sooner. This was ambitious- an aspiration that reflects the well-worn “Selection, Value and Convenience” philosophy of the firm. According to Samir Kumar who is Country Manager at Amazon India, while speaking on the goal to build a large, profitable business in India. So, as they continue to execute their strategy in giving the largest selection at the fastest speeds and highest value to customers in each one of the pin-codes of the country, they are excited to begin with a pilot that will give customers an option to get their every-day essentials in 15 minutes or less.
What’s fascinating in Amazon’s quick commerce venture is that it plans on using its immense logistics networks. Such an infrastructure would prove of utmost importance to helping facilitate delivery quickly. Sure-shot moolah in quick commerce for sure, Amazon could build a delivery network which should be fine-tuned toward helping in the new business venture. It would help the former to offer competitive delivery times while remaining cost-efficient.
This would be crucial to the pilot in Bengaluru as it would mean Amazon could test its quick commerce operations and fine-tune them before roll-outs. Not available is information on what the pilot will be offering, but the service is expected to range from groceries to all manner of other essentials. This resonates with the current trend of the fast commerce industry where the platforms are slowly shifting their focus to providing not just groceries but also medicines and other such needs.
As per the latest market research studies, Blinkit has 46% market share in India, followed by 29% market share by Zepto and 25% by Swiggy Instamart. But the competition is getting really hot in this segment especially after Flipkart introduced its quick commerce service called “Minutes” recently in several cities pushing up the heat among the tech majors in this competition.
Other than grocery, other quick-commerce companies are now even venturing into pharmaceutical deliveries. In this way, for instance, PharmEasy is tying up with Swiggy Instamart to make medicine delivery as swift as within 10 minutes after order fulfillment. Flipkart, sources said, also seems to be getting up. BigBasket apparently partnering with 1mg, the prescription delivery arm of Tata Digital.
This is the perfect time for Amazon to venture into quick commerce because the expectations of customers are increasing regarding fast delivery of products. As more and more consumers in cities demand their products to be delivered quickly, Amazon finds the right opportunity to sit strategically and expand its future share in the market.
Thus, Amazon India’s new pilot service for quick commerce in Bengaluru represents new developments in the competitive landscape online delivery services are meeting. This attempt will attempt to exploit the logistics capability to improve customer satisfaction and further penetrate the market. The interesting part is how Amazon will face challenges and opportunities in this dynamic sector in the process of the pilot, which may well alter the way consumers shop for everyday essentials.
