Amazon goes live with quick commerce service Now in Bengaluru
ETtech
Synopsis
The service is currently in beta mode and is available to select users, according to details on the Amazon app and people aware of the development. The ecommerce giant has set up 10-15 dark stores to support deliveries in the city, and plans to expand its footprint further in the coming weeks, sources said.
By Disha Acharya, ETtech
Last Updated:
Amazon has launched its quick commerce service, Amazon Now, across three pin codes in Bengaluru, marking its formal entry into India’s rapidly growing 10-15 minute delivery market. The service is currently in beta mode and is available to select users, according to details on the Amazon app and people aware of the development.
In response to ET's query. A spokesperson for Amazon said, "Through Amazon Now, we are offering a curated selection of everyday essentials... We will expand the service over the next few months."
Amazon’s move into quick commerce comes as the segment has seen aggressive growth led by players like Eternal-owned Blinkit, Swiggy’s Instamart, Zepto, Tata Digital-backed BigBasket, Flipkart Minutes, and Reliance’s JioMart. With Amazon Now, the company will directly compete with these established players.
The Amazon Now service is currently offering groceries, vegetables, beauty and personal care, home care, snacks and beverages, meat, among others.
ET had first reported on Amazon’s plan for quick commerce operations in August of 2024. At the time, Amazon had begun laying the groundwork for its quick commerce foray, appointing category leader Nishant Sardana to spearhead the initiative.
ET had also reported about Amazon Now's plans to have 300 dark stores in Delhi-NCR, Mumbai and Bengaluru by end-2025.
In December, Amazon’s senior vice president Amit Agarwal confirmed to ET that the retailer was planning to launch quick commerce here, making India one of the first markets where Amazon would test such a delivery model.
“Our goal remains the same, which is that we want to offer the largest selection of products to the largest customer base at the fastest speeds...,” Agarwal had said.
“There is a physics to how much you can deploy closer to customers…but here we’re talking about the consumption of a few thousand products. It would be stretching the facts on how things are changing,” he said.
Amazon is entering the segment as its rival in ecommerce, Flipkart, is aggressively scaling its quick commerce services. By the end of this year, Flipkart Minutes plans to have 800 dark stores across the country.
This has happened as the broader ecommerce segment has undergone a protracted slump. In 2024, growth in India’s retail market slowed down to 10-12% from over 20% in the previous years, as per a Bain & Company and Flipkart report.
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The ecommerce giant has set up 10-15 dark stores to support deliveries in the city and plans to expand its footprint in the coming weeks, sources said. The launch comes after multiple internal pilots.In response to ET's query. A spokesperson for Amazon said, "Through Amazon Now, we are offering a curated selection of everyday essentials... We will expand the service over the next few months."
Amazon’s move into quick commerce comes as the segment has seen aggressive growth led by players like Eternal-owned Blinkit, Swiggy’s Instamart, Zepto, Tata Digital-backed BigBasket, Flipkart Minutes, and Reliance’s JioMart. With Amazon Now, the company will directly compete with these established players.
The Amazon Now service is currently offering groceries, vegetables, beauty and personal care, home care, snacks and beverages, meat, among others.
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Like its competitors in the segment, Amazon Now is already offering discounts and offers. The platform is also waiving off handing surge fee and late-night charges, according to the information available on the app.ET had first reported on Amazon’s plan for quick commerce operations in August of 2024. At the time, Amazon had begun laying the groundwork for its quick commerce foray, appointing category leader Nishant Sardana to spearhead the initiative.
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Subsequently, ET reported that the company was building out its dark store network and targeting an initial launch by late 2024 or early 2025, operating under the internal codename Tez.ET had also reported about Amazon Now's plans to have 300 dark stores in Delhi-NCR, Mumbai and Bengaluru by end-2025.
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Ecommerce enters quick deliveryIn December, Amazon’s senior vice president Amit Agarwal confirmed to ET that the retailer was planning to launch quick commerce here, making India one of the first markets where Amazon would test such a delivery model.
“Our goal remains the same, which is that we want to offer the largest selection of products to the largest customer base at the fastest speeds...,” Agarwal had said.
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While incumbent quick commerce players have noted their service eating into the share of horizontal ecommerce platforms like Amazon, Agarwal downplayed the impact.“There is a physics to how much you can deploy closer to customers…but here we’re talking about the consumption of a few thousand products. It would be stretching the facts on how things are changing,” he said.
Amazon is entering the segment as its rival in ecommerce, Flipkart, is aggressively scaling its quick commerce services. By the end of this year, Flipkart Minutes plans to have 800 dark stores across the country.
This has happened as the broader ecommerce segment has undergone a protracted slump. In 2024, growth in India’s retail market slowed down to 10-12% from over 20% in the previous years, as per a Bain & Company and Flipkart report.
