🛒 Quick-commerce rises in India
In the last two years, India's quick-commerce market has exploded. With $4.5B in annual sales, Blinkit, Zepto, and Instamart now claim 25% of Amazon India's $18B revenue. This surge is led by categories like groceries, electronics, and household items, traditionally strongholds of Amazon.
📉 Amazon's missed opportunity
Despite India being a key market, Amazon overlooked quick-commerce. While Amazon mocked the trend in ads, rivals adapted. Flipkart launched "Flipkart Minutes" to woo Amazon's urban customers. Blinkit, bought by Zomato for under $600M in 2022, is now valued at $13B, further highlighting Amazon's misstep.
🏙️ Shift to tier 2 cities
Amazon also faces challenges from companies like Meesho, which has captured significant market share in smaller Indian cities. With 80% of Meesho's customers from tier 2 and beyond, the firm now rivals Amazon in mobile app usage. Analysts say Amazon's focus on urban areas and its slow adaptation to local trends is hurting its growth.
📊 Prioritizing cloud over commerce
Under Andy Jassy, Amazon is shifting focus to its cloud business in India. Of a $15B investment by 2030, $12.7B is for AWS, leaving e-commerce underfunded. Despite efforts like Amazon Pay and Amazon Fresh, the company has struggled with regulatory hurdles and changing consumer habits, leading analysts to doubt its ability to recover.
Is Amazon too late to catch up in India's quick-commerce race?
