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E-commerce giant Amazon India announced on Tuesday that it is expanding its grocery business, Amazon Fresh, to over 130 cities, including Ambala, Aurangabad, Hoshiarpur, Dharwad, Una, Suri, and others. Prior to this expansion, Amazon Fresh was available in over 60 cities across the country.
The service offers delivery of wet and dry groceries, including fruit and vegetables sourced from 11,000 farmers, as well as chilled products, beauty, baby, personal care, and pet products.
The rapid expansion comes amid increasing competition in the sector, with Amazon competing against 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 currently operates in over 200 cities, recently reported a 1.6 times year-on-year growth in its grocery segment during 2023-24 (FY24) compared to the previous year. It offers delivery slots from 7-10 am to 7-10 pm in major cities and has already introduced same-day deliveries in 20 cities for mobile phones, essential items, electronics, home appliances, fashion, books, and lifestyle products.
Amazon Fresh, on the other hand, offers slotted same-day deliveries within four hours and, in select regions, provides deliveries within two hours.
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In response to 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.
Amazon Fresh recently launched multiple thematic stores and events, such as a mango store, summer store, and Indian Premier League store, on the platform. Customers can also take advantage of features like personalised widgets, the ‘buy again’ option, and saved preferences.
Meanwhile, competition is intensifying in the quick-commerce space, dominated by players like Blinkit, Zepto, and Swiggy Instamart. These companies are now expanding into higher-value items like electronics to increase average order values, Business Standard reported earlier.
Zomato, in its fourth quarter (Q4) FY24 results, announced that Blinkit will expand its store footprint to 1,000 by the end of 2024-25. Blinkit had 526 stores as of March 31, 2024, and added 75 in Q4.
Swiggy, Zomato’s closest rival, is preparing for its initial public offering.
Mumbai-headquartered Zepto has reportedly raised $660 million and is also looking to expand its presence.
Flipkart and Reliance Retail’s JioMart have also announced plans to enter the quick-commerce segment.
