Amazon tests rapid delivery in India

The news: Amazon is testing a rapid delivery service in India that will enable shoppers in Bangalore to receive items like groceries and household items within 15 minutes, per Bloomberg.

The available product catalog will vary from groceries to household items, depending on the neighborhood being served.

Why it matters: Until now, Amazon focused on highlighting its Prime delivery speeds and steered clear of India’s increasingly competitive rapid delivery market that includes Zepto, Swiggy, and Zomato, as well as Walmart-backed Flipkart, which made its quick-commerce debut in August.

• That approach helped Amazon drive relatively healthy growth; we forecast Amazon’s ecommerce sales in India to rise by 15% this year to $35.25 billion.
• But its decision to cede the rapid-delivery market to its local competitors (and Walmart) cost it market share and growth opportunities. Amazon’s share of India’s ecommerce sales is expected to fall to 30.5% this year and continue dropping into 2026, per our forecast.
• With rapid deliveries projected to account for 70% of India's online grocery market by 2030, up from 45% today, Amazon faced a clear choice: Jump into the fray or risk falling behind.

Our take: Amazon sees a massive opportunity in India, a country where we expect ecommerce sales to soar 18% this year to $115.76 billion. Given the country’s rapid growth and importance, Amazon can’t afford to ignore consumers’ need for speed.

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