Amazon Debuts ‘Now’ in Bengaluru, Ignites Quick Commerce Battle

Amazon has formally stepped into India’s fast-growing quick commerce market with the launch of ‘Amazon Now’ in Bengaluru, directly challenging the dominance of existing players such as Blinkit, Zepto, and Swiggy Instamart. The move marks a significant strategic shift as the e-commerce giant looks to reclaim ground lost to rapid delivery platforms that are reshaping consumer behavior in India.

Amazon Now Rolls Out in Bengaluru After Pilot Run

Amazon Now has gone live in three key pincodes in Bengaluru after months of testing through a pilot that began in December 2024. The service focuses on delivering essential goods and groceries in 10 to 30 minutes, aligning Amazon with the ultra-fast delivery trend that has taken off in India’s metros and Tier I cities. Sources indicate the company is planning a phased expansion across Bengaluru in the coming weeks, followed by a rollout in other cities across India.

Highlights:

• Amazon Now launched in 3 Bengaluru pincodes after December 2024 pilot.

• Rapid 10–30 minute delivery model targets essential goods and groceries.

• Full-scale city expansion planned before national rollout.

Quick Commerce is Disrupting Traditional E-Retail Models

Amazon’s entry into the quick commerce space reflects a broader industry shift, as Indian consumers increasingly favor speed over traditional delivery windows. According to a joint study by Flipkart and Bain & Company, over two-thirds of online grocery orders and 10% of all e-retail spending in 2024 took place through quick commerce platforms. The shift is significantly eroding the market share of traditional e-commerce players such as Flipkart and Amazon.

Highlights:

• Quick commerce accounts for 66%+ of grocery orders, 10% of total e-retail.

• Traditional e-commerce players face growing share erosion.

• Amazon’s move is seen as both defensive and opportunistic.

Sector Faces High Growth but Also High Burn

Despite the massive surge in adoption, the quick commerce industry is grappling with steep financial losses driven by high customer acquisition costs, deep discounting, and operational expenses. Eternal (formerly Zomato) founder Deepinder Goyal disclosed in March that quick commerce companies are burning more than ₹5,000 crore per quarter, with Zepto alone responsible for over half that amount.

Highlights:

• Sector burns over ₹5,000 crore quarterly; Zepto accounts for 50%+.

• Competition intensifies as more players chase rapid delivery leadership.

• Profitability remains a long-term challenge despite consumer traction.

Amazon’s Entry Expected to Fuel Competitive Surge

Following Eternal CFO Akshant Goyal’s Q4FY25 commentary, it’s clear that quick commerce incumbents are preparing for a new wave of fierce competition. Amazon’s brand strength, logistics capabilities, and deep pockets could further escalate price wars and compress margins, even as the segment continues to scale rapidly. Analysts believe Amazon’s entry could also serve to validate the quick commerce model and attract more investor interest.

Highlights:

• Eternal vows aggressive market share push despite profitability concerns.

• Amazon’s scale and supply chain expertise seen as key threats.

• Entry likely to drive deeper price cuts, higher customer acquisition spends.

Market Size Expanding Rapidly with Rising TAM Projections

The Indian quick commerce market reached $7 billion in Gross Order Value (GOV) in 2024, up from $1.6 billion in 2022, and is projected to grow 40% annually through 2030, according to Bain & Company. Morgan Stanley has revised its total addressable market (TAM) forecast for the sector from $42 billion to $57 billion by 2030, driven by increasing penetration beyond Tier I cities.

Highlights:

• GOV surged from $1.6B (2022) to $7B (2024); 40% annual growth projected.

• TAM revised to $57B by 2030 amid rural and Tier II/III city expansion.

• Category diversification expected to further fuel adoption.

Current Market Share Dynamics: Blinkit Leads, Zepto, Swiggy Trail

According to brokerage Motilal Oswal, Blinkit leads India’s quick commerce market with a 46% share, followed by Zepto (29%) and Swiggy Instamart (25%). Analysts suggest that Amazon’s late but powerful entry could disrupt the current balance and reshape market share dynamics in the coming quarters.

Highlights:

• Blinkit leads with 46% share; Zepto at 29%, Instamart at 25%.

• Amazon’s entry expected to challenge incumbents’ grip.

• Consumer choice likely to expand amid faster fulfillment networks.

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