Amazon's Quick Commerce Arm To Go Live Soon With 15 Minute Delivery

E-commerce giant Amazon will launch its quick commerce segment, reportedly called 'Tez', this month, said Samir Kumar, Amazon India's country manager at the fifth edition of the Amazon Smbhav Summit at New Delhi's Bharat Mandapam. He revealed the company's plans to enter the fastest-growing quick commerce market.

"We are not late to the quick commerce space. We wanted to build a solution that ensures safety for both our customers and delivery associates. That's why we took the time to get at right," said Kumar.

"One in five items shipped from Amazon is a grocery item, so we already have a loyal customer base, including our prime members, who are looking forward to this convenience. Now, we’re focusing on delivering within 15 minutes. However, achieving this isn’t easy, especially when striving for such rapid delivery times," he said.

Speaking about predatory pricing, Amazon ensured compliance with government's rules and regulations in every market the company operates. Kumar also clarified that Amazon does not dictate the prices, it is the sellers who decide on the discounts.

Read More | Amazon Fast-Tracks Quick Commerce Plans Amid Rising Competition from Blinkit, Instamart

'No Threat For Kiranas'

Kirana stores are facing a stark existential challenge amid quick commerce boom in India. A recent survey stated that 82 per cent of quick commerce users in metro cities have shifted a quarter of their grocery spending from kiranas to the Blinkits of the world.

However, Amazon India's head said the company will continue working with kirana stores for its emerging businesses. "Kiranas don't have any threat from us. We have been working with them for the last 11 years and will continue to do the same," Kumar added.

Read More | Kiranas Embrace Tech To Counter Quick Commerce Threat

Amazon’s entry into the quick commerce space is coming at a time when the quick commerce space has been booming in India. Several key players who entered the space include Reliance Retail, Flipkart, and others. Some of the prominent players already present in the segment include Zepto, Blinkit, and Instamart.