Global e-commerce giant Amazon has launched a pilot of its “Amazon Now” service in Bengaluru as competition intensifies in the quick commerce sector. The quick commerce service, Amazon Now, arrives at a time when the expansion of these platforms is gaining popularity, especially among urban consumers.
An Amazon spokesperson stated, “Amazon has always focused on offering a wide range of products and providing fast, convenient delivery. We are constantly innovating to offer even greater value to customers. This limited pilot in select Bengaluru zip codes is a test to enable faster delivery of everyday essentials that customers often need quickly from our sellers.”
Amazon Now Promises 10-Minute Deliveries
While Amazon already offers grocery and food delivery with a two-hour delivery promise through Amazon Fresh, Amazon Now introduces a 10-minute delivery guarantee, marking the company’s first entry into the quick commerce space. Amazon is also collaborating with other logistics providers to ensure rapid deliveries.
Flipkart Minutes Expands Beyond Grocery
Before Amazon’s move, local e-commerce competitor Flipkart launched Flipkart Minutes in August last year, aiming to maintain its market share as existing quick commerce platforms expanded into categories beyond groceries. Tata Digital, through its e-commerce super app Neu, has also launched its own quick commerce service, Neu Flash, powered by Big Basket.
Blinkit Faces Margin Decline
Blinkit, one of the leading players in quick commerce, slipped into losses in the fourth quarter of December 2024 after previously posting profits. This decline in profit margins was attributed to the expansion of dark stores, which negatively impacted margins.
Meanwhile, Swiggy’s Instamart service saw its margins shrink in the third quarter of FY25 due to higher customer acquisition costs, market expansion, and growth expenses.
