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E-commerce giant Amazon is gearing up to make its foray into the burgeoning quick commerce space with the launch of its new service, reportedly called Tez, in January 2025. The announcement was made by Samir Kumar, Amazon India's head, at the fifth edition of the Amazon Smbhav Summit in New Delhi.
Notably, this is Samir Kumar 's first major announcement since assuming the role of Amazon India head. “This initiative is rooted in our commitment to convenience, selection, and value—the three pillars Amazon was built on. With Tez, we aim to bring everyday essentials to customers’ doorsteps within 15 minutes. This is about redefining convenience and speed for millions of households.”
A Step Towards 'Everyday Essentials'
Tez will focus on a curated selection of frequently purchased products, ensuring customers have quick access to groceries, household items, and personal care products. The service is designed to cater to the increasing demand for ultra-fast delivery while leveraging the strengths of Amazon's existing infrastructure.
Samir elaborated on the company’s broader vision, saying, “Tez is not just about fast deliveries; it’s about empowering local kirana stores and integrating them into Amazon’s ecosystem. These stores will play a vital role as hyperlocal partners, ensuring both speed and community involvement.”
He also highlighted how Amazon’s collaboration with kirana stores will further its mission to democratise access to quick commerce. “Kirana partnerships will remain pivotal. We have been working with them for the last 11 years and will continue to do the same. They enable us to serve customers faster while supporting local economies,” he said.
Samir emphasised Amazon's goal of scaling Tez beyond urban centres: “We’re starting in key cities, but our vision is to extend fast delivery services to every corner of India. This isn’t just for metro customers—it’s for everyone.”
“Amazon has met its pledge to digitize 10 million small businesses one year ahead of time and have enabled over 12 million small businesses to become a part of the digital economy. We have enabled nearly $13 billion in cumulative exports and have created nearly 1.4 million direct and indirect jobs in India.” he revealed.
In fact, Amazon has now increased its Exports pledge four-fold and plans to enable $80 billion in cumulative exports by 2030.
Tapping into a $5 Billion Market
India’s quick commerce market is projected to reach $5 billion by 2025, offering immense growth opportunities for players. But the space is already dominated by players like Blinkit, Swiggy Instamart, and Zepto. Addressing Amazon’s relatively late entry, Samir said, “Our approach is deliberate. When Amazon launches a service, it’s designed to scale while maintaining the highest standards of customer satisfaction. Tez will stand out for its selection, safety measures, and operational precision.”
The service has been in the works for months, with Amazon fine-tuning its operations to address challenges like road safety for delivery associates and maintaining product quality during rapid transportation. “Safety is non-negotiable for us,” Samir assured. “Whether it’s helmets for associates or ensuring the quality of perishables, we are committed to upholding best practices.”
When asked about the difference between Amazon Fresh and Tez, Samir clarified that Tez will complement rather than compete with Amazon Fresh. “Fresh has been a tremendous success, growing steadily with a loyal customer base. Tez will focus on a more streamlined selection of essentials, catering to customers’ need for ultra-fast delivery,” he explained.
Industry View
Industry experts attending the event highlighted the significance of Amazon's entry into the quick commerce segment with Tez, stating, "Amazon's move into this space is highly anticipated, not just by industry players but also by consumers. With its strong foothold in the market and years of experience, the company is well-positioned to carve out its niche in this competitive landscape. Already active in quick commerce through Amazon Fresh, Amazon enjoys the added advantage of a loyal customer base. The introduction of Tez will not only expand its reach across the country but also help attract a new wave of customers. Equipped with advanced technologies and expertise in maintaining optimal inventory levels, Amazon is uniquely prepared to navigate the evolving demands of the quick commerce market."
However, merely launching a 15-minute delivery app may not suffice in a market teeming with innovation from rivals like Blinkit, Zepto, and Flipkart Minutes. They elaborate on Blinkit’s creative strategies, including EMI options and a 10-minute clothing exchange service. “The EMI feature opens access to premium products for customers who previously found them unaffordable. It eases financial strain without compromising shopping convenience,” they explained. “Similarly, the 10-minute exchange facility caters to today’s fast-paced lifestyles, further enhancing customer ease.”
These tailored offerings by competitors underscore the need for Amazon to craft a consumer-centric strategy that goes beyond speed. Features that combine innovation, affordability, and convenience will be crucial for Tez to stand out in the crowded market.
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