Nov 25, 2024 05:12 PM IST
Currently, Zepto, Zomato’s Blinkit, and Swiggy’s Instamart dominate the sector making gross sales of about $5.5-6 billion just this month alone
Amazon India will launch its quick commerce service named Tez by late December or early next year as it is set to join the booming sector, according to an Economic Times report.
HT couldn’t independently verify the information.
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Currently, Zepto, Zomato’s Blinkit, and Swiggy’s Instamart dominate the sector with gross sales of about $5.5-6 billion just this month alone, according to the report.
This will also be Amazon’s first quick commerce venture in the world and it will be discussed in the next monthly review during the first week of December ahead of its annual Smbhav event, the report read.
Amazon is also freshly hiring for this project apart from already having a core team of employees for it, with the team describing the project as a ‘greenfield, grounds-up initiative for an upcoming and fast-growing ecommerce space in India’, according to the report.
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The move comes after Amazon’s rivals ventured into the business before it.
For instance, Flipkart launched Minutes before the October festive season and has since scaled the service.
Tata’s BigBasket has also switched to a quick commerce model and clocked in over ₹900 crore in gross sales last month according to the report, which added that Tata Digital has also rolled out Neu Flash.
The growth of quick commerce is another factor.
“We expect the quick commerce market size to overtake that of food delivery in 2026 in terms of gross order value (GOV). Given a larger addressable market, despite high competition, we see scope for each player to grow materially over the next 3-5 years. The challenge of growth and market share loss comes when the overall market itself has matured,” the report quoted a Morgan Stanley note on quick commerce and Zomato-Blinkit which came earlier this month.
Though it is codenamed Tez for now, the final name is also yet to be decided, according to the report.
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