Amazon Fresh, on Monday, declared its expansion to 60 cities in India and reiterated its commitment to delivering fresh and high-quality fruits and vegetables.
The ecommerce giant’s grocery delivery service in India offers an assortment of fruits, vegetables, chilled products, baby care items, personal care products, and pet care goods. Customers enjoy free shipping on orders worth INR 249 or more, and deliveries are fulfilled within the same day or the next day.
According to Srikant Sree Ram, Head of Amazon Fresh, the quick commerce division of Amazon expanded its presence to 50 cities last month, as reported by The Hindu Businessline.
Srikant Sree Ram further stated that more than half of Amazon Fresh’s customer base comprises individuals from Tier II and III markets, including Chandigarh, Thiruvananthapuram, and Kochi. These markets play a crucial role for Amazon Fresh’s operations.
“With this expansion, customers across India can purchase high-quality fresh fruits and vegetables delivered to them at their doorstep. We have seen good demand for seasonal products like mangoes and summer essentials this season and will continue to remain laser-focused on providing our growing customer base across the country the best online shopping experience,” Srikant Sree Ram said in a statement.
In the past three years, the quick commerce sector has experienced significant growth, with major players such as BigBasket, Swiggy Instamart, Blinkit, and Zepto securing substantial funding. However, this sector is known for its slim profit margins, making it a capital-intensive venture that requires substantial cash flow.
In their pursuit of profitability, quick commerce firms are undertaking significant measures. Reliance-owned JioMart ceased its express delivery operations last month, and Ola, a mobility firm, shut down Ola Dash in June of the previous year.
Meanwhile, Swiggy’s Instamart, Zomato’s Blinkit, and Bigbasket’s BBNow, among other similar businesses, are exploring strategies to minimize losses. They aim to boost order values and extend delivery timelines in order to improve profitability.
Last month, Zepto, a startup backed by Y Combinator, made a notable move by appointing Ramesh Bafna, the former CFO of Zilingo, as its CFO. With this strategic hire, Zepto expressed its intentions to prepare for an initial public offering (IPO) within the next two to three years.