Prime Time Crisis: Can Amazon Deliver Before Blinkit and Zepto Steal the Cart?

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Amazon is making a high-stakes foray into India's burgeoning quick commerce market with its latest launch, Amazon Now. But with Blinkit, Zepto, and Swiggy Instamart already ruling the roost, the question is: can Amazon regain its Prime advantage?

Key Takeaways from Amazon's Sudden Commerce Shift

Amazon Now is offered in certain Bengaluru areas with deliveries to Prime members within 10 minutes.
Prime members enjoy privileges like free shipping on orders over ₹99, no handling fee, and up to ₹150 cashbacks.
The action comes as Amazon's core marketplace experiences sellers' revenues plummeting, particularly in first-tier cities.

Why Amazon Is Playing Catch-Up

Blinkit, Instamart, and Zepto hold close to 88% of India's quick commerce market due to early mover advantage and high-density dark store networks.
Experts believe that Amazon is at least two years behind, and its integrated app model lacks the brand recognition of individual platforms.
Prior company attempts at speed delivery did not scale due to execution gaps and SKU limitations.

Challenges and Strategic Adaptations

Amazon is now investing in non-inventory dark stores and expanding its fulfillment footprint.
However, raising Prime membership fees and Prime Video monetization diluted its value proposition.
Operations, and not capital, is Amazon's biggest challenge—fast commerce demands operational velocity, not just deep pockets.

Prospects

Experts believe that Amazon should follow the same strategy in Tier II and Tier III cities to achieve actual value.
Currently, Blinkit and Zepto are well ahead, but Amazon's size and logistics muscle could potentially still make it a serious contender in the near future.

Source: Inc42.