Amazon officially enters quick commerce race with ‘Now’ launch in Bengaluru

Despite the growing popularity of 10-minute delivery platforms, the sector is also witnessing rising losses due to intensifying competition and high burn rates.

Amazon has formally launched its quick commerce service, Amazon Now, in three pincodes of Bengaluru, marking its official entry into the ultra-fast delivery segment where rivals Blinkit, Zepto, and Swiggy Instamart already dominate, Moneycontrol has learnt.

The launch follows a pilot that began in December 2024 and signals the company’s intent to claw back market share as Indian consumers increasingly shift from traditional 1–2 day deliveries to rapid 10–30 minute deliveries for daily essentials and groceries.

Amazon is expected to expand the Now service to more neighborhoods in Bengaluru in the coming weeks, before scaling it to other cities, according to people in the know.

Confirming the development, an Amazon spokesperson said: "We are running our 10 mins delivery service Amazon Now in select pin-codes in Bengaluru and are excited with the initial customer response and positive feedback, especially from Prime members. Based on this, we're now expanding the service over the next few months. Through Amazon Now, we offer a curated selection of everyday essentials delivered within minutes, addressing immediate customer needs while maintaining Amazon's standards for safety, quality and reliability."

Amazon’s entry comes at a time when quick commerce platforms are not only seeing rapid adoption but are also beginning to erode the share of legacy e-commerce players like Flipkart and Amazon itself.

According to a recent report by Flipkart and Bain & Company, over two-thirds of online grocery orders and about 10 percent of overall e-retail spending in 2024 occurred on quick commerce platforms.

Despite the growing popularity of 10-minute delivery platforms, the sector is also witnessing rising losses due to intensifying competition and high burn rates.

In March, Eternal (formerly Zomato) founder Deepinder Goyal said quick commerce firms were burning over ₹5,000 crore each quarter—with Zepto alone accounting for more than half of that.

ALSO READ: Blinkit, Zepto and Swiggy Instamart scale to over 4 million daily orders in March; more than double YoY

Industry leaders have already been bracing for a more competitive phase.

“Our view is that competition is going to intensify further from here in the near term…We will aggressively look to grow our market share, especially in the face of heightened competition, and will not let any short-term profitability goals come in the way of that,” Eternal CFO Akshant Goyal said in a letter to shareholders following its Q4FY25 results.

Nevertheless, the growth opportunity remains substantial. Bain estimates the Indian quick commerce market reached $7 billion in gross order value (GOV) in 2024, a sharp jump from $1.6 billion in 2022. The market is expected to grow over 40 percent annually through 2030, as platforms expand across more cities and product categories.

Meanwhile, brokerage Motilal Oswal recently pegged Blinkit’s market share at 46 percent, followed by Zepto at 29 percent and Swiggy Instamart at 25 percent. Analysts say Amazon’s entry will likely intensify competition but could also validate the model further.

Morgan Stanley, too, has revised its quick commerce TAM (total addressable market) for India to $57 billion by 2030, up from an earlier estimate of $42 billion, driven by faster-than-expected user adoption beyond Tier I cities.