Amazon’s quick commerce service code named Tez to challenge Blinkit, Zepto

Amazon India is planning to launch its quick commerce service, reportedly code-named Tez, as early as late December or early next year, reported news agency Reuters. According to sources cited in the report, this move will mark Amazon’s entry into the fast-growing quick commerce space in India, where competitors like Blinkit, Zepto, and Swiggy Instamart currently dominate.
The quick commerce sector, which deals with ultra-fast delivery of groceries and daily essentials, is projected to reach a market size of nearly $7 billion by 2024.
Sources mentioned in the report suggest that Amazon initially planned to roll out Tez in the first quarter of 2025 but has now accelerated its timeline. The launch date could be finalised during the company’s December review meeting, just ahead of its annual Smbhav event.
The service will likely start with groceries and everyday essentials, following a model similar to its rivals. Amazon is working on setting up dark stores, managing stock-keeping units (SKUs), and building the logistics infrastructure needed for quick deliveries. The company has also started hiring staff for this project.
According to a job post from Amazon’s India grocery and essentials team, the initiative is being described as a “ground-up project in an upcoming and fast-growing ecommerce space.” However, the final name for the service is yet to be decided.
Amazon is entering a crowded market where other players are scaling up rapidly. Flipkart, Amazon’s main rival in India, launched its Minutes quick commerce service earlier this year and has already expanded it to major cities.
Tata Group has also entered the segment with Neu Flash, a quick commerce service under its Tata Neu super app. BigBasket, another Tata-owned company, has shifted to the quick commerce model, reporting gross sales of over Rs 900 crore in October.
Zepto recently raised $350 million, taking its cash reserves past $1 billion, while Zomato’s Blinkit has secured shareholder approval to raise another $1 billion through qualified institutional placements (QIP).
According to a Morgan Stanley report, the quick commerce market could reach a size of $25 billion to $55 billion by 2030, depending on growth conditions. The report forecasts significant growth in key metrics, such as the number of households using ultra-fast delivery services and the frequency of orders.
The report also highlights that high-frequency users, who make up about one-third of current users, are expected to account for nearly 75-80% of the total market value by 2030.
The quick commerce sector is projected to overtake food delivery in gross order value (GOV) by 2026, making it a key area of focus for ecommerce players.
As Amazon gears up for this launch, the company has also made organisational changes in its India operations. Samir Kumar, a long-time company veteran, has taken over as Amazon India’s head following the exit of Manish Tiwary.
The company plans to relocate its Bengaluru headquarters to a new facility closer to the airport in January, a move aimed at reducing operational costs.
Amazon India’s marketplace business reported a 14% rise in operating revenue to Rs 25,406 crore in FY24, while losses decreased by 28% to Rs 3,469 crore. However, its growth remains slower compared to the pandemic years, when revenue increased by 32% and 49% in FY22 and FY21, respectively.
As Amazon prepares to enter the quick commerce market, it will face stiff competition from established players like Blinkit, Zepto, and Flipkart.