E-commerce giant Amazon has integrated two of its grocery divisions Pantry and Fresh into one to simplify the experience for customers as the sector is gearing up for an intense competition with the expected entry of the Tata Group in the space.
The Tata Group is reported to have finalised a $200-250 million primary cash infusion in BigBasket as part of its larger deal to acquire a majority stake.
Besides BigBasket, Amazon also locks horns with Softbank-backed Grofers which is reported to be weighing its options to list in the US through a merger with a special purpose acquisition company.
Now while Amazon Pantry offers customers large packs and offerings mostly across dry grocery, Fresh focuses on fruits and vegetable and fast moving consumer goods products with a quick delivery timeline.
Following the development, Pantry will come under Fresh which will offer customers supermarket selection along with Pantry deals from sellers, including super-value packs and items.
Customers will be able to shop for fruits, vegetables, frozen and chilled products like dairy and meats, dry grocery items, beauty, baby, personal care and pet products, while having the convenience of two-hour delivery slots.
The move is likely to help Amazon concentrate on its strengths and offer on-demand grocery services to its customers.
Customers will be able to either opt for two hour delivery or choose a two hour slot from 6AM to midnight. Free delivery will be available on all orders over Rs 600 below a delivery fee of Rs 29 will be charged.
"Customers love the two hour convenience of Fresh for daily grocery and unmatched Pantry savings when they shop for dry grocery. We are excited to integrate these services in a single online grocery store thus allowing customers to enjoy unmatched convenience and value," said Siddharth Nambiar, director, category management, Amazon India.
Interestingly, the transition will only happen in the 10 cities where Fresh is currently present in India starting month end. The rest of the 290 cities will continue to have Amazon Pantry for now.
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