Amazon fast-tracks Tez launch amidst quick commerce boom in India

Amazon is accelerating the rollout of Tez, its quick commerce initiative in India, originally scheduled for the first quarter of 2025, to tap into the rapidly growing e-commerce market, according to reports. The final blueprint for Tez is expected to be firmed up during a monthly review meeting in early December.

The project, described as a ‘greenfield, grounds-up’ effort in Amazon job listings, prioritises team building and logistics infrastructure. Key developments include establishing dark stores and launching categories like groceries and essentials to anchor its operations.

The company will face stiff competition from entrenched players in the quick commerce sector. Flipkart recently launched its delivery service, Minutes, ahead of the festive season, while Tata-owned BigBasket has shifted to a quick delivery model, reporting gross sales of ₹900 crore in October. Tata Digital’s Neu Flash is also expanding its footprint following its October debut.

Start-ups Zepto and Blinkit are scaling aggressively, buoyed by strong financial backing. Zepto recently raised $350 million, pushing its cash reserves past $1 billion. Blinkit, owned by Zomato, is set to receive an additional $1 billion following shareholder approval.

The quick commerce market’s rapid growth is attracting attention from analysts. Morgan Stanley estimates the sector could be worth $7 billion in 2024, with the potential to reach $25–55 billion by 2030. The firm also predicts quick commerce could surpass food delivery in gross order value by 2026, citing increased app downloads and frequent user engagement as key drivers.

Simultaneously, Amazon India is implementing cost optimisation strategies, including relocating its Bengaluru headquarters to reduce expenses. Despite these measures, the company reported solid financial performance in FY24, with revenue rising 14% to ₹25,406 crore and a 28% reduction in losses to ₹3,469 crore. However, growth remains below the levels seen during the pandemic-driven e-commerce boom.

As the company enters the fiercely competitive quick commerce arena, its success will hinge on achieving both speed and scale in a market increasingly dominated by established and emerging players.