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Amazon Expands Grocery Business to Over 130 Cities

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

The service delivers wet and dry groceries, including fruits and vegetables sourced from 11,000 farmers, chilled products, beauty, baby, personal care, and pet products.

The firm is expanding rapidly amid increasing competition in the sector, where it is competing with players like Flipkart, Reliance’s JioMart, Tata Digital-owned BigBasket, and quick commerce platforms like Swiggy Instamart, Zepto, and Zomato-owned Blinkit.

Flipkart’s grocery business, which currently operates in over 200 cities, recently reported a 1.6 times year-on-year growth in its grocery business during FY24, compared to the previous year. It offers delivery slots from 7 AM to 10 AM and 7 PM to 10 PM in major cities and has already started same-day deliveries in 20 cities for mobiles, essential items, electronics, home appliances, fashion, books, and lifestyle products.

Amazon Fresh, meanwhile, offers slotted same-day deliveries within four hours. In select regions, the firm also provides up to two-hour deliveries.

To compete with quick commerce players, BigBasket also recently started offering sub-two-hour deliveries in 45 cities. The firm reportedly has plans to extend this service to all the 70 cities it currently operates in.

“Our expansion and focus on quality products demonstrate our commitment to serve customers and offer them the best online shopping experience for fresh produce and daily essentials. Further, customers can avail benefits from cashback, offers, and bank discounts, adding value to their every purchase,” said Srikant Sree Ram, director, Amazon Fresh.

Amazon Fresh recently launched multiple thematic stores and events like mango store, summer store, IPL store, and more. Buyers can also avail features like personalized widgets, buy-again options, and saved preferences, the company said.

Meanwhile, competition is also heating up in the quick commerce space, which is dominated by players like Blinkit, Zepto, and Swiggy Instamart. These firms are now foraying into listing bigger-ticket items like electronics, in a bid to increase average order values, Business Standard reported earlier.

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

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

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Source: Business Standard

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