Amazon Now, which is the company’s official entry into the ultra-fast delivery segment, will now compete with rivals Blinkit, Zepto, and Swiggy Instamart which already dominate the market.

New Delhi: In a major development, e-commerce giant Amazon has launched its Amazon Now service in three pin codes of Bengaluru. Amazon Now, which is the company’s official entry into the ultra-fast delivery segment, will now compete with rivals Blinkit, Zepto, and Swiggy Instamart which already dominate the market.

According to a Moneycontrol report, the launch follows a pilot that began in December 2024 and indicates the company’s intention to regain market share, as Indian consumers increasingly move from traditional 1–2 day deliveries to rapid 10–30 minute deliveries for daily essentials and groceries.

The American e-commerce giant is likely to expand the service to other places in Bengaluru in coming weeks before scaling it to other cities. It is important to note that Amazon NOW’s entry comes at a time when quick commerce platforms are not only witnessing quick adoption but are also starting to capture 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.

To recall, Eternal (formerly Zomato) founder Deepinder Goyal earlier had said that the quick commerce firms were burning over Rs 5,000 crore each quarter—with Zepto alone accounting for more than half of that.

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.

Author Credits- Victor Dasgupta
India.com