Key Points :
Amazon launches 10-minute delivery in Mumbai after strong traction in Bengaluru and Delhi.
Orders are growing 25% month-on-month, and Prime members are making over three times the number of orders.
Growth overlaps with the Great Indian Festival, starting 23 September.
Key Background :
Amazon Now was newly launched as Amazon’s debut in the ultra-fast delivery space, targeting city dwellers who are in the mindset of having instant access to need items. Convenience will be provided by the service for household products, snacks, grocery products, and festival products.
In order to provide the promise of speed, Amazon relies on a system of micro-fulfillment centers, or dark stores, located strategically within close proximity of residential areas and stocked with best-sellers to facilitate delivery in less than ten minutes.
In Delhi and Bengaluru, Amazon Now already exceeded expectations. The service registered a 25% month-to-month increase in orders, indicating intense adoption levels. Furthermore, Prime members using the service have witnessed high growth in terms of shopping frequency, as they have tripled order volume relative to past trends.
The Mumbai launch comes in time for the company in advance of its Great Indian Festival, which commences on 23 September, one of its biggest sales of the year. Through the launch of the service in Mumbai, Amazon hopes to rely on festive customers who prefer quick delivery and convenience.
Indian quick-commerce arena is already warming up. Competitors like Blinkit, Swiggy Instamart, Zepto, Flipkart Minutes, BB Now, and JioMart are also fighting to impress city consumers with speed-delivery tactics. They are all going all out with dark stores and logistics assets to ramp up operations.
Although Amazon Now is still operational in specific geographies in Bengaluru, Delhi, and Mumbai independently, the firm is already expanding its services to other metro cities. This has been executed as part of Amazon’s greater scheme to establish business in India’s rapidly emerging e-commerce and fast-commerce market.
About the Author
Abhishek Roy
Abhishek Roy is a Managing Editor at Business Minds Media India.