Amazon enters Quick Commerce - What next?

Amazon has officially entered the quick commerce sector in India with the launch of Amazon Now in three pincodes of Bengaluru, following a pilot run in December 2024. This move marks Amazon’s foray into ultra-fast delivery (10–30 minutes) for groceries and daily essentials, competing with established players like Blinkit , Zepto , and Swiggy Instamart . Amazon plans to expand its presence across Bengaluru in the coming weeks before entering other cities. The rise of quick commerce platforms reflects shifting consumer preferences from traditional 1–2 day deliveries to rapid fulfillment, with over two-thirds of online grocery orders and 10% of overall e-retail spending occurring on these platforms in 2024. However, the sector faces challenges, including high burn rates and mounting losses, with firms reportedly burning ₹5,000 crore per quarter, led by Zepto. Despite the competition, the market opportunity is significant. The Indian quick commerce market grew to $7 billion in gross order value (GOV) in 2024, up from $1.6 billion in 2022, and is projected to grow at 40% annually through 2030 , driven by expansion into new cities and categories. Market share leaders include Blinkit (46%) , Zepto (29%) , and Swiggy Instamart (25%) . Amazon’s entry is expected to intensify competition but also validate the quick commerce model further. Morgan Stanley estimates the total addressable market (TAM) for quick commerce in India could reach $57 billion by 2030 , reflecting faster-than-expected adoption beyond Tier I cities. Industry players are preparing for heightened competition, with companies like Eternal (formerly Zomato) prioritizing market share growth over short-term profitability. Is it a time to wait and watch in this segment and wait for clarity to emerge over time. The next few quarters can see huge cash burns and expenses for listed entities like