Amazon India Set to Compete with Blinkit, Swiggy, and Zepto with Quick Commerce Service Tez Launch

Amazon India is reportedly gearing up for the launch of its quick commerce service called Tez by the end of 2024 or early 2025, in a new foray into the rapidly growing quick commerce sector. For the competition in the market of growing demand of fast delivery of essential and grocery items, it will be matched with the opponents namely Blinkit, Zepto, and Swiggy Instamart. 

Tez, first expected to launch in the first quarter of 2025, is being fast-tracked in a bid to grab the booming e-commerce segment. The service aims to offer rapid delivery of essentials, starting with groceries, through the establishment of dark stores and strategic stock-keeping categories. Amazon India is currently in the process of building a dedicated team and infrastructure to support Tez, with a monthly review meeting set for early December to finalize plans. 

In the competitive landscape, Amazon faces challenges from several companies that have already gained traction in the quick commerce space. Flipkart, Amazon’s main rival, launched its quick delivery service, Minutes, ahead of the festive season, while Tata’s BigBasket has transitioned to the quick commerce model, reporting a notable Rs 900 crore in gross sales last month. Furthermore, Tata Digital’s Neu Flash, which launched in October, is also expanding rapidly. 

After attracting considerable funding rounds, Zepto and Blinkit have aggressively scaled. The former recently raised $350 million, bringing its total funding to over $1 billion; for the latter, its parent company Zomato has received approvals to raise an additional $1 billion from shareholders. In 2026, Morgan Stanley expects a company called the quick-commerce market to gross $25-$55 billion by 2030 and hence is seen to surpass food delivery on this count. The market is forecasted to reach USD 7 billion by 2024, driven by a rise in the growth of app downloads and increased user engagements. 

Amazon India is also making moves to optimize its costs. The company is said to be relocating the Bengaluru head office to cut operational costs, in line with broader corporate strategies seeking cost-efficacy. Amazon India saw a 14% increase in revenues to Rs 25,406 crore for FY24 and 28% decrease in losses to Rs 3,469 crore. However, the growth rate remains below those reached during the pandemic period. 

Amazon wants to set up a strong presence in an intensely competitive market for speed and scale success, as it ventures into quick commerce.