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Technology

Will Amazon’s ‘Tez’ Redefine Quick Commerce in India? Explore the Details

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In a strategic move to capture a share of India’s burgeoning quick commerce market, Amazon is set to launch ‘Tez’, a service designed to provide rapid delivery of groceries and daily essentials. This initiative positions Amazon alongside competitors like Blinkit, Zepto, and Swiggy Instamart, all vying for dominance in the fast-paced delivery sector. ​

Amazon’s Foray into Quick Commerce

The quick commerce sector in India has experienced exponential growth, with gross sales reaching approximately $5.5-6 billion recently. Recognizing this potential, Amazon has expedited the launch of ‘Tez’, initially planned for the first quarter of 2025, now anticipated by late December or early next year. ​

Strategic Implementation of ‘Tez’

To ensure the success of ‘Tez’, Amazon is adopting a comprehensive approach that includes:​

Infrastructure Development: Establishing dark stores to facilitate swift inventory management and delivery processes.​

Product Focus: Prioritizing groceries and daily essentials to meet immediate consumer needs.​

Logistics Enhancement: Optimizing logistics networks to ensure timely deliveries.​

Additionally, Amazon is actively recruiting talent to support this high-priority project, reflecting its commitment to establishing a strong foothold in the quick commerce domain. ​

Competitive Landscape

Amazon’s entry into quick commerce intensifies competition with established players:​

Flipkart: Launched its ‘Minutes’ quick service before the festive season and has expanded to major cities.​

Tata Group: Through BigBasket’s shift to quick commerce and the introduction of ‘Neu Flash’ under the Tata Neu super app, Tata has significantly increased its market presence.

Zepto: Secured $350 million in funding, boosting its cash reserves to over $1 billion, indicating robust growth and investor confidence.​

These developments underscore the rapid evolution and competitiveness of India’s quick commerce sector. ​

Conclusion

Amazon’s impending launch of ‘Tez’ signifies its strategic intent to penetrate India’s quick commerce market, offering consumers expedited access to groceries and daily essentials. As ‘Tez’ prepares to compete with established services like Blinkit, Zepto, and Swiggy Instamart, consumers can anticipate enhanced convenience and more options in the realm of rapid delivery services.

Business News

Zomato Invests ₹1,500 Crore in Blinkit to Fortify Quick Commerce Presence

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In a strategic move to enhance its footprint in the quick commerce sector, food tech giant Zomato has infused an additional ₹1,500 crore (approximately $178 million) into its subsidiary, Blinkit. This investment comes on the heels of a ₹500 crore funding round just a month prior, underscoring Zomato’s commitment to bolstering Blinkit’s operations amidst intensifying market competition.

Details of the Investment of Zomato

According to regulatory filings accessed from the Registrar of Companies (RoC), Blinkit’s board approved a special resolution to issue 7,612 equity shares at an issue price of ₹19,70,181 each, facilitating the ₹1,500 crore capital raise.

This substantial capital injection follows Zomato’s ₹8,500 crore fundraising through a Qualified Institutions Placement (QIP) three months earlier, aimed at strengthening its financial position and supporting strategic initiatives, particularly in the quick commerce segment.

Financial Performance and Market Dynamics

In the third quarter of the current fiscal year, Zomato reported a remarkable 64.4% year-on-year growth in operating revenue, reaching ₹5,405 crore, up from ₹3,288 crore in Q3 FY24. However, the company’s profits declined by 57.2% to ₹59 crore during the same period.

Blinkit, on the other hand, demonstrated impressive growth, with its operational revenue surging over 117% year-on-year to ₹1,399 crore in Q3 FY25, up from ₹644 crore in the corresponding quarter of the previous fiscal year.

This investment also comes in the wake of rival Swiggy’s recent infusion of ₹1,000 crore ($117 million) into its supply chain unit, Scootsy Logistics, to bolster its quick commerce arm, Instamart. According to a Citi report, Blinkit currently leads the quick commerce market with a 41% share, while Swiggy trails at 23%.

Conclusion

Zomato’s continued financial commitment to Blinkit highlights its strategic focus on dominating the quick commerce landscape in India. As competition intensifies, such investments are poised to enhance operational capabilities, expand market reach, and solidify Blinkit’s position as a market leader in rapid delivery services.