E-commerce giant to pilot instant delivery service for everyday essentials, challenging established players Zepto and Swiggy Instamart in the southern market
In a significant move that could reshape Tamil Nadu’s quick commerce landscape, Amazon India has announced its entry into the 15-minute delivery segment. The e-commerce leader plans to launch “Project Tez,” a quick commerce initiative focusing on everyday essentials, starting this December in select areas of Tamil Nadu.
Samir Kumar, Amazon’s Country Head for India, revealed the company’s strategic push into the instant delivery space during a recent press interaction. “We are going to have our own offering of everyday essential items delivered in 15 minutes,” Kumar stated, emphasizing that convenience remains one of Amazon’s core pillars alongside selection and value.
The announcement comes at a time when Tamil Nadu’s quick commerce market is experiencing rapid growth, with established players like Zepto, Swiggy Instamart, and Blinkit already competing for market share. The state’s dense urban centers, particularly Chennai and Coimbatore, have become battlegrounds for quick commerce startups, with the sector estimated to reach ₹5,000 crore in gross merchandise value (GMV) by 2024 in Tamil Nadu alone.
Amazon’s entry is expected to leverage its existing strong presence in the grocery segment. “One out of five items shipped from Amazon in India is a grocery product, and fresh groceries make up a significant portion of that,” Kumar noted. The company plans to utilize its extensive network of fulfillment centers and local store partnerships across Tamil Nadu to support the new service.
The timing of Amazon’s entry has raised questions, given that competitors have already established significant market presence. However, Kumar defended the company’s measured approach: “For us, it’s not about being the first. It’s about getting it right. We take our time to make decisions because we want to build a service that works at scale, is safe, and is sustainable.”
Dr. Rajesh Menon, Director of the Tamil Nadu Startup and Innovation Hub, views Amazon’s entry as a catalyst for the local startup ecosystem. “This move will create new opportunities for local businesses, particularly in last-mile delivery and inventory management. We expect to see a surge in ancillary startups supporting the quick commerce infrastructure,” he commented.
The impact on Tamil Nadu’s startup ecosystem could be substantial. Local logistics startups are likely to benefit from partnership opportunities, while existing quick commerce players may need to innovate to maintain their market position. The entry of Amazon could also accelerate the adoption of advanced warehouse automation and inventory management technologies among local businesses.
Safety considerations form a crucial part of Amazon’s strategy, particularly relevant in Tamil Nadu’s busy urban areas. “The safety of our associates and delivery partners is a top priority. We are ensuring they are equipped with helmets, adhere to traffic regulations, and operate under conditions that prioritize their well-being,” Kumar emphasized.
Amazon’s vast product selection could be a game-changer in the market. While current players typically offer around 5,000 items, Amazon’s ecosystem supports millions of SKUs, though the quick commerce service will initially focus on high-frequency essentials.
The launch of “Project Tez” signals Amazon’s commitment to the Tamil Nadu market and could mark a new chapter in the state’s e-commerce evolution. As the quick commerce battle intensifies, consumers stand to benefit from improved service quality and competitive pricing, while the local startup ecosystem gains opportunities for innovation and growth
