Amazon is accelerating its push into the Middle East’s cut-throat quick commerce market with a 15 minute delivery service, entering a space already dominated by regional players as a response to shifting consumer behavior.
The move comes as the e-commerce giant acknowledged that grocery and perishables represent its weakest category online, with Ronaldo Mouchawar, VP of Amazon MENA, conceding that e-commerce penetration in consumables “continues to be fairly small, even all over the world.”
“That probably is the least penetrated category,” Mouchawar told Arabian Business in an exclusive interview, revealing that the entire online grocery market in the region sits at an estimated $1-1.5 billion, which is a fraction of the total grocery sector, particularly in Saudi Arabia, where family sizes drive consumption levels two to three times higher than the UAE.
Amazon bets big on quick commerce
The launch of Amazon Now marks a significant operational departure for a company built on massive warehouses and automation. Rather than deploying its trademark fulfillment infrastructure, Amazon has opted for partnerships with existing retail networks, a strategy that highlights both the capital intensity of quick commerce and the company’s need to scale rapidly.
The approach includes tie-ups with Emirates Post’s 7x brand, converting post offices into micro-fulfillment centers, along with partnerships with regional grocery chains Lulu in the UAE and Al Othaim in Saudi Arabia.
“Instead of building our own big buildings, figure out who’s already on the ground,” Mouchawar said, defending the strategy as a way to “get as close as we can to customers in a capital-efficient manner.”
Amazon’s entry into 15-minute delivery puts it in direct competition with established regional players who have spent years building last-mile logistics networks specifically designed for ultra-fast grocery delivery.
When pressed on differentiation, Mouchawar pivoted to Amazon’s broader catalogue rather than addressing specific quick commerce advantages. “Amazon offers millions of products,” he said.
The operational complexity of 15-minute delivery has forced Amazon to rebuild core systems from scratch. The company now replenishes inventory hourly rather than daily, compressing fulfillment windows from hours to minutes while maintaining accuracy across fresh, frozen, and perishable goods, he added.
“This is the shortest one. It’s the most delicate, accurate,” Mouchawar acknowledged, highlighting the perishable service’s vulnerability.
The company is betting heavily on AI and machine learning to manage dynamic inventory across neighborhood micro-fulfillment centers, accounting for seasonal patterns and hyperlocal demand variations.
Amazon Now will seek to expand further to cities in the UAE, Saudi Arabia, and Egypt in what Mouchawar described as a “hyper, super, hyper local” service.
Mocuhawar offered no timeline for expansion beyond these three markets, highlighting that the company is only “focusing on the big cities.”
He also revealed that Amazon has moved “over 100 tons” of bananas through the service, positioning the fruit as a top seller and making light references to school lunch habits.
“I think probably every kid going to school gets a banana from Amazon,” he joked.
Follow us on
