Amazon is reportedly testing 15-minute-or-less grocery deliveries as it takes on Walmart in India.
The eCommerce giant is joining a wave of “quick commerce” companies promising super-fast deliveries of products such as groceries and electronics in India, Reuters reported Tuesday (Dec. 10).
Amazon hopes to focus on implementing a program “to offer the largest selection at fastest speeds and greatest value to customers in every single pin-code across the country,” Samir Kumar, country manager of Amazon India, said in a statement provided to Reuters.
The quick commerce sector in India is expected to surpass $6 billion in annual sales this year, jumping from $100 million in 2020, per the report.
Other players in the space include Flipkart, backed by Amazon rival Walmart, which earlier this year began piloting a quick commerce service that promised grocery deliveries in 10 minutes. Indian conglomerate Reliance has also launched a pilot for a 10- to 30-minute delivery service near Mumbai, the report said.
The quick commerce model has been criticized by India’s traditional retailers, who said they are having trouble competing with the steep discounts and fast service that these platforms can offer.
The All India Consumer Products Distributors Federation, the country’s largest retail distribution trade group, called for a watchdog investigation of three major quick commerce companies — Zomato’s Blinkit, Swiggy and Zepto — over claims of predatory pricing.
Amazon’s entry into the space is the latest example of the company working to expand its grocery offerings. The company’s Whole Foods Markets have begun opening their smaller footprint stores to court quick-trip shoppers. Last month, Amazon launched a grocery-delivery partnership with Mexico’s Justo.
“Amazon Prime struggles to replicate Walmart’s grocery success, despite using its vast eCommerce infrastructure and Prime membership,” PYMNTS wrote in November. “While Amazon offers grocery delivery through its Whole Foods partnership, it still charges delivery fees in many areas, and the service is limited to select locations.”
For many Prime members, groceries remain a secondary offering, with the service mostly used for fast shipping on non-grocery products. All the same, the convenience of bundling groceries with other Amazon benefits is gradually attracting more shoppers, PYMNTS wrote.
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