Amazon is expanding its quick commerce services, drawing inspiration from its experiences and technologies developed in India. The e-commerce giant is launching these services in the US, UAE, Egypt, and Mexico.
The expansion signifies a major strategic move for Amazon, aiming to capture a significant share in the rapidly growing quick commerce market. This approach focuses on ultra-fast delivery options to cater to evolving consumer preferences. Amazon is aiming to reduce delivery times to as low as 15-30 minutes, using its existing logistics infrastructure and partnerships with local retailers.
India as a Blueprint
Amazon's foray into quick commerce in other markets is heavily influenced by its operations in India. The company has been developing and refining its quick commerce strategy in India, with plans to further expand its presence across major cities like Bengaluru, New Delhi, and Mumbai. Amazon is aggressively expanding its "Amazon Now" service in India, with plans to have 300 dark stores by the end of 2025.
"Today, even if we look at quick commerce and the Amazon Now capability—we operate similar quick commerce capability in the UAE, Egypt, and Mexico. We recently just launched it in the US and a lot of that technology was built first here in India,” said a representative from Amazon.
This indicates that the technology and strategies developed in India are being replicated and adapted for use in these new markets.
Quick Commerce in India
India's quick commerce market has experienced substantial growth, driven by consumer demand for fast and convenient delivery services. Several companies, including Blinkit, Swiggy Instamart, and Zepto, have emerged as key players in this market. These platforms utilize a network of dark stores and efficient logistics to ensure rapid delivery of goods, typically within 10-30 minutes.
Amazon's entry into the quick commerce segment in India reflects the increasing competition and potential in this sector. Other players like Flipkart with "Flipkart Minutes", and BigBasket with "BB Now" are also vying for market share.
Amazon Now in the UAE
Amazon has already launched its quick delivery service, Amazon Now, in the UAE. The service promises to deliver essential products to customers' doorsteps within minutes. Amazon Now is available to Prime members in a wider range of areas. The service operates seven days a week, offering free delivery within minutes for Prime members, with the entire delivery waived for orders exceeding AED25 ($6.8). Categories available through Amazon Now include household and grocery items, dairy, meat and fish, breakfast cereals, pharmacy, snacks, cleaning supplies, and ready meals. Amazon Now and a 2-hour delivery service are available in Dubai, Abu Dhabi, and Al Ain, with plans for further expansion.
Challenges and Opportunities
While quick commerce presents significant opportunities, it also poses challenges. Maintaining dark stores, managing delivery partners, and meeting ultra-fast delivery demands can put pressure on margins. Companies must balance speed with practicality and sustainability.
Amazon's expansion into quick commerce reflects the company's commitment to meeting evolving customer expectations and leveraging its technological expertise to gain a competitive edge. By drawing on its experiences in India and adapting its strategies to local markets, Amazon aims to establish a strong presence in the global quick commerce landscape.
