Amazon’s speedy delivery service is gaining traction in Brazil, and fresh food is largely driving that momentum, according to a company executive.
The service, called Amazon Now, originally launched in the United States with a promise of delivering orders within 30 minutes in select major cities. Amazon has since taken the concept international, rolling it out in markets including Mexico, India, Japan, and Britain, focusing on everyday essentials and groceries.
In Brazil, the service operates with an even faster 15-minute delivery window, and the reception has exceeded expectations — particularly when it comes to fresh and frozen food, which Amazon had never offered Brazilian customers before.
“We are very positively surprised by fresh food acceptance, which we hadn’t sold before,” said Fernanda Grumach, the shopping experience director at Amazon’s Brazilian operations, in an interview with Reuters.
Amazon initially rolled out Amazon Now with grocery deliveries in portions of eight Brazilian cities and has continued expanding its reach, including into Osasco, located in the greater Sao Paulo metropolitan area, Grumach noted. Since the Brazilian launch, the product selection available through the service has grown by 15%, with a notable increase in fruits and vegetables. Amazon declined to share specific sales figures.
The company faces stiff competition in Brazil from Uruguay-based e-commerce platform MercadoLibre and Shopee, which is owned by Singapore’s Sea. Amazon may also find itself going head-to-head with iFood — a meal delivery app owned by Dutch investment group Prosus that holds a dominant position in Brazil’s food delivery market.
For its Amazon Now operations in both Brazil and Mexico, Amazon has teamed up with Colombian delivery app Rappi, sharing logistics hubs as part of the partnership. The service launched in Mexico late last year.
Grumach also noted that the ongoing World Cup has given demand a boost in Brazil, with customers ordering items like soccer stickers, snacks, and beverages. That observation came before Brazil’s five-time soccer champions suffered a shocking loss to Norway on Sunday.
According to Grumach, there is no universal strategy for Amazon Now since what drives demand can differ significantly by market. However, some markets can serve as useful previews for others.
“For example, Mexico debuted in the World Cup earlier than Brazil, so we closely monitored demand for Amazon Now there and thought, ‘Well, we better be prepared for that here,’” she said.
