Finshots Daily Why is Amazon late to the quick commerce party?
Sep 18, 2025
Discover why Amazon chose to enter the quick commerce sector in India amidst fierce competition. Learn about the launch of Amazon Now in Mumbai and the challenges the company faced, including pandemic-related hiring issues and FDI limits. Delve into the concept of late-mover advantages and how Amazon’s extensive Prime membership might help them succeed in this fast-paced market.
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Quick Commerce Is A Discount-Fueled Cash Burn
- Quick commerce in India has become a cash-burning, discount-driven race with average discounts rising to 20-25% of MRP.
- These heavy discounts have shrunk already thin or negative profit margins for players in the space.
Growth Without Profitability
- Blinkit and Instamart grew revenue sharply but saw operating losses widen significantly year-on-year.
- Their operating margins measured against net order value remain deeply negative, exposing unit economics stress.
Amazon’s Pandemic And Rivian Setback
- Amazon delayed quick commerce while it battled pandemic hiring, warehouse constraints and post-2022 financial shocks.
- A costly Rivian stake in 2022 forced Amazon to pause expansion, freeze hiring and prioritize profitable units like AWS.