The switch from e-commerce to quick commerce had started off as a trickle, but now it’s turning into a deluge.
A day after Big Basket had said that it would switch its entire operation to quick-commerce and focus on quick deliveries, Amazon is reportedly launching its own quick commerce initiative. The initiative had been mooted internally for a while, but now has a tentative launch date. Amazon will likely launch its quick commerce offering in India in the first quarter next year, and deliver products in 20-30 minutes.
Amazon executive Nishant Sardana, who was heading the PC, audio, camera and large appliances business at Amazon India, has been given the mandate of the quick commerce business, ET reported. Former Cloudtail chief executive Ranjit Babu, who was heading the wireless and home entertainment businesses at Amazon India, will now manage consumer electronics, large appliances and wireless and other verticals.
“A final product is still work-in-progress, but slotted deliveries may remain, and they are planning to start quick with select SKUs (stock keeping units, or items). It will still be a catch-up game with rivals — both existing and new entrants,” an executive said. “The idea is to gradually bring it (delivery time) down to 20-30 minutes,” said another person aware of the matter. “Amazon still has its next-day customer base for grocery and non-grocery items, but consumer adoption towards 30-minute deliveries has changed the landscape for everyone,” they added.
Reports of Amazon launching its quick commerce offering come a day after Big Basket had announced that it would switch entirely to quick commerce. Big Basket thus far ran two verticals: its regular deliveries, which took several hours and offered cheaper prices, and BB Now, which delivered in 10-20 minutes. Big Basket is now pivoting fully to BB Now, and their app only shows the instant delivery option, much like with Zepto and Blinkit. BB Now was already accounting for around 50 percent of Big Basket’s sales, and the company seems to have decided to go all-in on its quick commerce initiative.
These are big developments for the quick commerce space, which is already looking quite crowded. India’s quick commerce market is currently dominated by Zomato-owned Blinkit, Zepto, and Swiggy’s Instamart. Walmart-owned Flipkart has already launched its quick commerce offering in Flipkart Minutes, and Amazon and Tata-owned Big Basket are set to launch their own quick commerce offerings as well.
All this could result in a similar dash towards quick commerce as had been seen in e-commerce in the previous decade. Quick commerce now has clear product market fit, and a bevy of well capitalized firms that are looking to establish themselves in the new vertical. For customers, this could end up resulting in new discounts and offers as these companies vie for their attention, as well as an increasing portfolio of goods that are available within minutes — Flipkart is already selling laptops through Flipkart Minutes, and it’s likely that Amazon and Tata will push their electronics goods through their quick commerce offerings. This will ramp up the pressure on the early movers in the space including Zepto and Blinkit, which will need to fight off the challenge from deep-pocketed competitors to maintain their early mover advantage. It’s going to be a fascinating battle, and the winners could end up dominating India’s commerce space in the years to come.