Amazon’s Tez: New Quick Commerce Service to Compete with Blinkit, Zepto

Amazon India will introduce its quick commerce service, called Tez, by late December or early next year, Reuters reports. It is Amazon’s entry into the fast-growing quick commerce sector in India, which is currently dominated by rival companies like Blinkit, Zepto, and Swiggy Instamart. The rapid commerce market, or ultra-fast delivery of daily necessities and groceries, is projected to grow close to $7 billion by 2024.

Amazon India Set to Launch Quick Commerce Service ‘Tez’ by December, Challenging Competitors

Tez was originally scheduled to launch in 2025, but Amazon has pulled the product’s timeline forward and the firm is eyeing a launch in December, ahead of the company’s Smbhav event. The service will mainly include grocery deliveries and essentials like competitors and will require the setting up of dark stores, stock management, and a logistics network to achieve fast delivery times. The service doesn’t have a name yet, but Amazon has already begun hiring for this project.

Amazon faces steep competition as Flipkart rolled out its Minutes quick commerce offering earlier this year and has already expanded to big cities. Tata Group has already introduced Neu Flash via its Tata Neu app, while BigBasket, which is now with Tata, has adopted the quick commerce model, growing rapidly. Zepto raised $350 million and Zomato-owned Blinkit is targeting $1 billion in funding. These developments underscore the growing competition in India’s quick commerce sector.

The rapid delivery space is on track to blow up in India: according to projections, the market for rapid delivery in India could be between $25 billion and $55 billion by 2030. The number of households using these services, particularly frequent users, is anticipated to surge. By 2026, quick commerce is predicted to surpass food delivery in order value, making it a key focus for e-commerce players.

Alongside the launch of Tez, Amazon India has seen leadership changes, with Samir Kumar taking over as head of the India operations. The company is also relocating its Bengaluru headquarters to a more cost-effective location near the airport. Despite a slowdown in growth compared to the pandemic years, Amazon India’s marketplace business saw a 14% rise in operating revenue in FY24, indicating steady progress.

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