Amazon launches grocery delivery app in India

Yesterday in Bengaluru, Amazon India launched a two hour, “hyperlocal” on-demand grocery delivery service through its dedicated app, Amazon Now. In a company statement yesterday, the Indian unit of the US giant, which is battling Indian home-grown rivals such as Flipkart and Snapdeal for dominance in the e-commerce market, said it has tied up with local grocery stores and modern retailers. According to a Kotak Institutional Equities report, groceries account for half of Indian retail consumption, and therefore inventory-less models could become more profitable through expansion by scaling up operations. However, achieving that will be the real challenge due to stiff competition, high churn rates and unpredictable customer behaviour.

BENGALURU: In an anticipated move, e-commerce behemoth Amazon has launched a two-hour, hyperlocal express delivery platform, which will look to deliver household products through a separate mobile app. Amazon Now, as it’s being called, went live in Bengaluru. The move comes at a time when existing hyperlocal startups are in the midst of tinkering with their business models in order to make themselves financially viable.Last year, Amazon piloted Kirana Now in a few neighbourhoods of Bengaluru wherein it collaborated with mom-and-pop stores to deliver goods. Subsequently, its closest rival Flipkart launched its Nearby app for grocery deliveries and Snapdeal picked up a stake in PepperTap, indicating its interest in the space.At present, Amazon Now is live only on the Android platform. The e-tailer said it has collaborated with retail chains like Big Bazaar, Godrej Nature’s Basket, Reliance Fresh and Food World, as well as local kirana stores. The products covered range from groceries, health and personal care, baby items to home and kitchen, besides others.Amazon Now is enabled with two new delivery services — express (two hours) and scheduled. Both would have delivery charges for orders below Rs 250. A detailed questionnaire sent by TOI to the company regarding Amazon Now remained unanswered.However, Samir Kumar, VP, category management, Amazon India, said in a statement, “We are encouraged by the learnings from Kirana Now — a pilot that we started last year in Bengaluru to enable customers to shop for their everyday essentials from the ecosystem of their local stores and get them delivered within two-four hours. We are excited to expand that service to include more selection, more pincodes and invite other branded retailers, with the launch of a dedicated Android app Amazon Now.”