The race for dominance in India's fiercely competitive quick commerce sector is heating up. Amazon India, which entered the ultra-fast delivery space later than its rivals, is now aggressively expanding its infrastructure to catch up. This strategic acceleration comes at a crucial time when key competitors like Zepto and Swiggy's Instamart have successfully lined up substantial new funding to fuel their own growth.
The Funding Surge: Zepto and Instamart Gear Up
The competitive landscape received a significant jolt with recent financial developments. In October, the quick commerce startup Zepto secured a massive $450 million investment from its backers. This funding round valued the company at $7 billion, marking a sharp 40% increase from its previous valuation. Bolstered by this capital, Zepto is also preparing for an eventual Initial Public Offering (IPO).
Not to be left behind, food delivery giant Swiggy's board has given the green light for its quick commerce arm, Instamart, to raise a substantial Rs 10,000 crore. This war chest is expected to be deployed to deepen its market penetration and expand its service network, putting immense pressure on other players in this capital-intensive sector.
Amazon's Counter-Strategy: Rapid Infrastructure Rollout
In response to this heightened competition, Amazon India is shifting its quick commerce expansion into high gear. The company has announced an ambitious plan to fortify its delivery network for its 10-minute service. The core of this strategy involves a rapid rollout of micro-fulfilment centres, which are compact warehouses located close to customer hubs.
Amazon has committed to opening two new micro-fulfilment centres every single day to service its quick delivery promises in major metropolitan areas like Delhi, Mumbai, and Bengaluru. This aggressive daily expansion is set to significantly boost its network capacity. By the end of this year, Amazon aims to have over 300 such centres operational across the country, a notable increase from the current count of 230-250.
Market Share: A Lopsided Battle
The current market structure reveals a clear hierarchy. According to analysts at Datum Intelligence, the trio of Blinkit, Zepto, and Instamart collectively command over 90% of the quick commerce market. Within this dominant group, Zomato-owned Blinkit is the undisputed leader, holding close to half of the entire market with a share nearing 50%.
In contrast, the other players are fighting for a much smaller slice of the pie. Services like Tata's BigBasket, Amazon Now, and Flipkart Minutes together account for just 5-7% of the market. This stark divide underscores the challenge faced by Amazon and others in disrupting the established order.
The Scale of Incumbents and the Road Ahead
The scale achieved by the top players is formidable. Blinkit and Instamart have expanded their networks to include more than 1,000 dark stores, covering several hundred cities nationwide. Zepto, though younger, is not far behind, with a presence of over 900 dark stores across more than 60 Indian cities. Flipkart's quick service, Minutes, is currently operational in over 30 cities.
Amazon's accelerated daily rollout of micro-fulfilment centres is a direct attempt to bridge this infrastructure gap. The quick commerce sector in India is notoriously cash-intensive, requiring continuous investment in technology, logistics, and inventory. With fresh capital flowing to the leaders and Amazon pressing hard on the expansion pedal, consumers can expect even faster delivery times and more aggressive promotional offers as these giants battle for every customer and every order in India's promising yet punishing quick commerce arena.
