Amazon India has announced a significant expansion of its grocery business, Amazon Fresh, extending its reach to over 130 cities. This expansion now includes cities such as Ambala, Aurangabad, Hoshiarpur, Dharwad, Una, and Suri. Previously, Amazon Fresh was available in over 60 cities across India.
Amazon Fresh offers a wide range of wet and dry groceries, including fresh fruit and vegetables sourced from 11,000 farmers, as well as chilled products, beauty, baby, personal care, and pet products. The service is known for its slotted same-day deliveries within four hours and, in select regions, two-hour delivery options.
This rapid expansion comes as Amazon faces increasing competition in the grocery sector from other major players like Flipkart, Reliance’s JioMart, Tata Digital-owned BigBasket, and quick-commerce platforms such as Swiggy Instamart, Zepto, and Zomato-owned Blinkit.
Flipkart’s grocery business, which operates in over 200 cities, reported a 1.6 times year-on-year growth in its grocery segment for the fiscal year 2023-24 (FY24) compared to the previous year. Flipkart offers delivery slots from 7-10 am to 7-10 pm in major cities and has introduced same-day deliveries in 20 cities for a variety of products, including essential items, electronics, and lifestyle products.
In response to the quick-commerce competitors, BigBasket has also started offering sub-two-hour deliveries in 45 cities and plans to extend this service to all 70 cities it currently operates in.
“Our expansion and focus on quality products demonstrate our commitment to serving customers and offering them the best online shopping experience for fresh produce and daily essentials. Additionally, customers can benefit from cashback, offers, and bank discounts, adding value to every purchase,” said Srikant Sree Ram, director of Amazon Fresh.
To enhance customer experience, Amazon Fresh has recently launched multiple thematic stores and events, such as a mango store, summer store, and Indian Premier League store. The platform also offers features like personalised widgets, the ‘buy again’ option, and saved preferences.
Meanwhile, competition in the quick-commerce space is heating up. Blinkit, Zepto, and Swiggy Instamart are expanding into higher-value items like electronics to increase average order values. Blinkit, in particular, announced plans to expand its store footprint to 1,000 by the end of 2024-25, up from 526 stores as of March 31, 2024, with 75 stores added in Q4.
Swiggy, Zomato’s closest rival, is preparing for its initial public offering, and Mumbai-headquartered Zepto has reportedly raised $660 million to expand its presence. Flipkart and Reliance Retail’s JioMart have also announced plans to enter the quick-commerce segment.
The grocery delivery landscape is now characterized by a mix of slotted delivery providers like Flipkart and BigBasket and quick-commerce firms such as Blinkit, Zepto, and Swiggy Instamart, each vying to capture a larger share of the burgeoning market.