Hello, this is Priyanka Salve, writing to you from Singapore.
Welcome to the latest edition of the “Inside India“ — your destination for news and developments from the world’s fastest growing economies.
India’s 15-minute delivery boom is reshaping one of the world’s fastest-growing e-commerce markets. The service, which is expected to account for around 40% of online retail sales in the country by 2030, is currently led by local players, but Amazon-owned Flipkart and Walmart are posing a serious challenge. Statistics go beyond growth – they strive to remain relevant in a market that is redefining consumer expectations.
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It’s a big story
Delivery of less than 15 minutes, or fast trading, Indian companies have found something surprising: they have disrupted the big bugs. But the war is not over.
Amazon again WalmartFlipkart-owned, the e-commerce giants that once dethroned the retail market in India, were late to enter the e-commerce space but are now mounting a tough challenge against incumbents in the sector.
E-commerce companies are not just chasing market share in a new format – they need to offer fast commercial services to remain relevant to consumers, experts told CNBC, adding that India is an important long-term market where they need to tap into changes in consumption habits.
So, during Amazon CEO Andy Jassy’s visit to India last week, brisk trade was undoubtedly the focus.
On June 24, Jassy visited a small fulfillment center in Mumbai and said in a post to X that the global e-commerce giant now has ambitions to become “the largest network of minute delivery.”
In its app, Amazon Now in India offers cash back of up to 25% on the first five orders and a waiver of platform fees and delivery charges as it aims to accelerate customer onboarding and deepen service adoption.
The American company plans to provide Amazon Now services in more than 300 cities, compared to Blinkit, which is the leading e-commerce company in India with more than 2,200 black shops operating in more than 200 cities from March 2026.
Another challenger, Flipkart, also said last week that its express service, Minutes, has more than 1,000 small fulfillment centers in more than 130 cities.
“For Amazon and Flipkart, this isn’t just about introducing another retail format — it’s about making sure they remain relevant when fast fulfillment becomes the preferred method of e-commerce,” Aakash Agrawal, associate director at Anand Rathi Investment Banking, told CNBC.
An employee of Swiggy Ltd. processing orders inside the company’s black shop in Mumbai, India, on Thursday, Oct. 24, 2024.
Bloomberg | Bloomberg | Getty Images
A hectic discovery
Quick Commerce is a post-pandemic phenomenon in India that started with less than 15-minute delivery of new products and fast-moving consumer goods but gradually expanded to include smartphones, small electronic gadgets and appliances, beauty products, pharmacy and more.
It has reshaped consumer habits to prioritize online product delivery within minutes rather than days. Food delivery companies such as Eternal again Swiggywith their local logistics networks, they were among the first to rise in this space in India, although it is Zepto that is often credited with being the first to launch instant commerce in 2021.
While new products, staples, and FMCG goods are the most ordered products on the fast-paced commerce platforms, according to experts, small electronics, kitchen appliances, and travel accessories are also popular across Amazon, Flipkart and their strongest competitors.
Amazon is also setting up 100 urban fulfillment centers that will have apparel, electronics, jewelry, shoes, luggage, watches, wireless accessories, musical instruments and furniture for quick trade orders.
According to an April report by Bain & Company, India is the “global leader” in the adoption of instant commerce, with about 17% of its total e-commerce flowing through these platforms.
By 2030, the e-commerce opportunity in India is expected to reach between $65 and $70 billion, a six-fold increase from 2025, the report said, adding that it would account for 40% of total online retail sales in total and nearly half of incremental sales.
Both Amazon and Flipkart are already facing a flurry of e-commerce acquisitions in India and are expected to take market share from competitors with weaker financial profiles, experts said.
“Prime members tripled their purchase frequency when they started using it [Amazon Now]and we’ve seen orders double every quarter since launch,” Jassy said in his post, adding that ecommerce is now the company’s “fastest growing ecommerce business unit in India.”
A Flipkart spokesperson told CNBC that the e-commerce company is seeing a significant increase in the adoption of instant commerce outside of major cities, and Gen Z is the “fastest growing group,” accounting for 40% of its customer base.
With the entry of Flipkart and Amazon, the intensity of competition in the fast e-commerce market has increased, say experts, adding that it will eventually shrink to two to three companies in the next few years as cash burn ends.
Blinkit, Eternal’s e-commerce platform, is the only e-commerce company that has shown an operating profit in the past two quarters. It reported adjusted earnings before interest, tax, depreciation and amortization of 370 million rupees ($3.8 million) in the March quarter and 40 million rupees in the previous quarter.
“Our view is that Blinkit will be one of these two or three players,” Aditya Soman, senior research analyst at CLSA India, told CNBC Inside India on Tuesday.
But the space for the other two winners in the fast-paced commercial race remains open.
You need to know
Amazon adds new funding, raises India AI and cloud investment to $48 billion
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One of India’s biggest gold exporters was paying its managing director just $180 a month, an investigation revealed
Indian authorities have found financial and operational irregularities at one of the country’s largest gold companies, Rajesh Exports, according to an investigation released Wednesday, after weeks of market regulators raising concerns about the company’s reported profits.
It’s coming
July 1-3: Japanese Prime Minister Sanae Takaichi visits India.
July 3: HSBC final PMI composite for June.
