E-commerce giant Amazon on Tuesday launched its “Amazon Now” service in Brazil, promising delivery of everyday essentials and groceries within 15 minutes, as it steps up its expansion in Latin America’s largest economy.
The company is betting big on the Brazilian market, with its country head describing Brazil as Amazon’s top priority for new investments, news agency Reuters reported.
The quick delivery service will launch in Sao Paulo on Tuesday, and will gradually expand to seven other cities by March 9 this year, Amazon Brazil’s shopping experience director Fernanda Grumach told a press conference, adding that there are plans for a broad expansion later.
The development comes while Brazil’s e-commerce segment is navigating heightened competition in recent years between players like Amazon, Uruguay-based MercadoLibre and Singapore-based company Sea’s Shopee.
Amazon Prime loyalty programme users to get benefit
Amazon Now, which had been launched in Mexico last year and is available in the United States, will offer free delivery to Brazilian people, who would subscribe to Amazon’s Prime loyalty programme. Meanwhile, other customers will pay a 5.49 reais ($1.04) fee, the company was quoted as saying by the news agency.
There will be no service fee on orders for an undetermined time, the company added.
Amazon bets big on Brazil
Amazon has been adopting a more aggressive strategy in Brazil, rolling out new promotions since last year, including cutting logistics fees for individuals and businesses that sell products on its platform, according to Reuters.
“Brazil has become a priority among the countries in which Amazon invests in the world. It is the highest investment priority today,” country head Juliana Sztrajtman told the news agency.
Amazon, which will partner with delivery app Rappi in its new service in Brazil, entered the Latin American country in the early 2010s, and noted that it has invested 55 billion reais in the nation since then.
“Every portfolio expansion ends up attracting new sellers,” Sztrajtman said, adding that, Amazon Now is a service that brings in more customers and traffic.
When asked whether Amazon is comfortable with its recent promotional push, the country head said the company is focused on the long-term. “Many things started happening last year with greater intensity, and we will continue at this pace,” he said.