Amazon Expands Grocery Business to More than 130 Cities as Competition Grows

E-commerce largest Amazon India on Tuesday announced that it is expanding its Amazon Fresh grocery business to over 130 cities, including Ambala, Aurangabad, Hoshiarpur, Dharwad, Una and Suri. Prior to the expansion, Fresh delivered products to over 60 cities across the country.

The service delivers wet and dry groceries, including fruit and vegetables from 11,000 farmers, chilled products, cosmetics, children’s, care and pet products.

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The company is growing rapidly in the face of increasing competition in the industry, where it competes with players such as Flipkart, Reliance’s JioMart, Tata Digital’s BigBasket and fast trading platforms such as Swiggy Instamart, Zepto and Zomato’s Blinkit.

Flipkart’s grocery division, which currently operates in over 200 cities, recently reported a 1.6-fold year-on-year growth in its grocery business in FY24 compared to the previous year. It offers delivery times from 7:00 AM to 10:00 AM and 7:00 PM to 10:00 PM in major cities and has already started same-day deliveries in 20 cities of mobile phones, essentials, electronics, home appliances, fashion, books and lifestyle products.

Meanwhile, Amazon Fresh offers same-day delivery within four hours. In selected regions, the company also provides deliveries up to two hours.

To compete with fast-trading players, BigBasket recently started offering deliveries in less than two hours in 45 cities. According to reports, the company plans to expand this service to all 70 cities where it currently operates.

“Our expansion and focus on high-quality products demonstrates our commitment to serving customers and offering them the best online shopping experience for fresh produce and everyday essentials. Moreover, customers can avail cashback, offers and bank discounts, adding value to every purchase,” said Srikant Sree Ram, Director, Amazon Fresh.

Amazon Fresh recently launched many theme stores and events such as Mango Store, Summer Store, IPL Store and more. Shoppers can also enjoy features such as personalized widgets, repurchase options and saved preferences, the company says.

Meanwhile, competition is also growing in the fast trading space, dominated by players such as Blinkit, Zepto and Swiggy Instamart. As previously reported by Business Standard, these companies are now starting to put higher-priced products such as electronics on sale in a bid to increase average order value.

Zomato, after announcing its fourth-quarter FY24 results, said that Blinkit will expand to 1,000 stores by the end of FY25. It had 526 stores as of March 31, 2024, and added 75 in the fourth quarter.

Swiggy, Zomato’s closest rival, is working on an initial public offering. Mumbai-based Zepto has reportedly raised $660 million and is also planning to expand its presence. Reliance Retail’s Flipkart and JioMart have also announced that they will enter the fast commerce segment.