Amazon rolls out 15-minute grocery delivery in Brazil, touts LatAm country as ‘top investment priority’

E-commerce giant Amazon launched its “Amazon Now” service in Brazil on Tuesday, promising delivery of daily essentials and groceries within 15 minutes as it accelerates its expansion in Latin America’s largest economy.

The company is investing heavily in the Brazilian market, with the country’s president describing Brazil as Amazon’s top priority for new investments, Reuters news agency reported.

The express delivery service will launch in Sao Paulo on Tuesday and gradually expand to seven more cities by March 9 this year, Fernanda Grumach, Amazon Brazil’s director of shopping experience, told a press conference, adding that there are plans for a broad expansion later.

This development comes as Brazil’s e-commerce segment has been struggling with increased competition in recent years from players such as Amazon, Uruguay-based MercadoLibre and Singapore-based Sea’s Shopee.

Benefits of Amazon Prime loyalty program users

Amazon Now, which launched in Mexico last year and is available in the United States, will offer free delivery to Brazilians who subscribe to Amazon’s Prime loyalty program. Meanwhile, other customers will pay a fee of 5.49 reais ($1.04), the news agency quoted the company as saying.

The company added that no service fees will be charged for orders placed for an indefinite period of time.

Amazon invests heavily in Brazil

Amazon is adopting a more aggressive strategy in Brazil, rolling out new promotions since last year, including lowering logistics fees for individuals and businesses selling products on its platform, according to Reuters.

“Brazil has become a priority among the countries in which Amazon has invested in the world. Today it is the highest investment priority,” country president Juliana Sztrajtman told the news agency.

Amazon, which will partner with the delivery application Rappi for 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 country since then.

“Every portfolio expansion attracts new sellers,” Sztrajtman said, adding that Amazon Now is a service that brings more customers and traffic.

When asked if he was happy with Amazon’s latest promotional push, the country president said the company was focused on the long term. “A lot of things started happening more intensely last year, and we will continue at that pace,” he said.