Amazon is preparing to introduce its quick commerce service in India by early 2025, positioning itself to compete in the fast-growing sector, where Flipkart has already made strides with its ‘Minutes’ service.
Leadership Changes and Strategic Appointments:
To lead this initiative, Amazon India has appointed Nishant Sardana as the head of its quick commerce division, while simultaneously undergoing a leadership restructuring.
Strategic Considerations and Partnerships:
Amazon is also exploring the possibility of acquiring a stake in Swiggy’s Instamart. However, the new quick commerce service is still awaiting approval from Amazon’s global headquarters, as the company has yet to roll out such services on a global scale.
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Leadership Challenges:
The recent departure of Manish Tiwary, Amazon India’s head, in October adds an extra layer of complexity to the upcoming launch.
Strategy Refinement and Delivery Model:
Having pioneered grocery delivery with its Pantry service, Amazon is now fine-tuning its strategy by integrating next-day delivery with its two-hour Fresh service, enhancing its overall offering.
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Partnerships and Inventory Focus:
Amazon partners with More Retail stores to facilitate these deliveries, with slotted deliveries expected to remain part of its model, particularly for select stock-keeping units (SKUs). The quick commerce industry is anticipated to undergo further changes in 2024.
Conclusion
As Amazon gears up for the launch of its quick commerce service in India by 2025, it faces both opportunities and challenges in a rapidly evolving market. With leadership changes, strategic partnerships, and a refined delivery model, Amazon is positioning itself to compete with established players like Flipkart’s ‘Minutes’ service. As the company navigates internal restructuring and explores potential acquisitions, the quick commerce sector is set to undergo significant shifts in the coming years, with Amazon at the forefront of this transformation in India.
