- Amazon’s decision to ignore quick-commerce in India proves costly.
- Competitors like Flipkart and Meesho seize opportunities.
- Shifting priorities and regulatory hurdles further complicate Amazon’s position in the market.
A costly oversight
Amazon’s decision to ignore the burgeoning quick-commerce sector in India is proving to be a significant misstep.
The top three quick-commerce firms—Zomato’s Blinkit, Zepto, and Swiggy’s Instamart—are on track to record annual sales of about $4.5 billion, a fourth of Amazon India’s sales.
Competitors seizing the day
Flipkart, Amazon’s chief rival in India, has launched its own quick-commerce offering called Flipkart Minutes.
This move is seen as a strategic play to win over Amazon India’s urban customers.
Meanwhile, social commerce platform Meesho has made deep inroads in smaller Indian cities and towns, commanding greater market share in the mobile app space than Amazon does in India.
Under Andy Jassy’s leadership, Amazon appears to be prioritizing its cloud business in India. The company has also struggled the slow pace of merchant adoption and stringent restrictions imposed by the Indian government on e-commerce firms.
Despite efforts to expand into mobile payments and food delivery, Amazon has faced setbacks and closures in these ventures.
