Amazon is planning to invest about $3 billion in its Indian quick-commerce business through 2030 as it looks to gain ground in the rapidly expanding market for deliveries within minutes, according to two people with direct knowledge of the plans.
The U.S. e-commerce company is expected to invest about $1 billion by the end of 2027, followed by another $2 billion through 2030. Amazon declined to comment on the investment figures but said its quick-commerce operation has surpassed $1 billion in annualized gross sales over the past three months, making it the fastest-growing e-commerce business in Amazon India’s history.
Much of the planned spending is expected to support Amazon Now, including an expansion of its network of small neighbourhood warehouses used to fulfil rapid deliveries. Amazon currently has about 750 such locations and is targeting approximately 1,300 by April next year, according to one of the sources. Investments are also expected in inventory-management systems, artificial intelligence for predicting demand and a broader product selection.
Amazon and Walmart-owned Flipkart entered quick commerce after domestic competitors had already established significant market share. India’s quick-commerce industry is currently valued at about $19 billion and is projected to reach $41 billion by 2030, according to Datum Intelligence. Blinkit, Swiggy and Zepto collectively control about 77 per cent of the market and operate more than 4,500 stores, while Flipkart has more than 1,000 locations and an estimated 11 per cent share. Amazon’s share stands at about 6.2 per cent.
Amazon is expected to concentrate primarily on frequently purchased daily essentials rather than stocking every high-value product available through competitors. The strategy could present challenges because grocery orders generally have lower average values and margins than electronics and other non-grocery products. Amazon, however, is betting that its existing e-commerce customer base and investments in infrastructure can help it expand its quick-delivery business.
The expansion comes as India’s rapid-delivery sector faces increased scrutiny over delivery-worker safety. The Indian government ordered companies in January to stop promoting their services using “10-minute” delivery claims amid concerns about pressure on riders. Amazon must also navigate India’s regulations governing foreign-owned e-commerce companies as it increases its investment in one of its key international growth markets.
