Amazon to Invest $3bn in Indian Quick Commerce by 2030, Reports Reuters
Amazon will spend $3 billion to grow its quick-commerce business in India by 2030, Reuters reported on Thursday, citing two sources with knowledge of the plans. Quick commerce refers to app-based orders delivered to customers within minutes.
Amazon declined to comment on the figures but confirmed that its quick-commerce arm had achieved $1 billion in annualized gross sales in the last three months—making it the fastest-growing segment of its Indian e-commerce business.
According to Reuters, the initial $1 billion will be invested by the end of 2027, and the remaining $2 billion by 2030. The funds will primarily support:
- Construction of approximately 1,300 new small neighbourhood warehouses for Amazon Now, its delivery service within the main Amazon app, by April 2027 (up from around 750 today).
- Inventory software, AI tools for demand prediction, and a wider range of products.
Amazon enters the market behind rivals like Blinkit, Swiggy, and Zepto, which together hold 77% of the market, according to Datum Intelligence data cited by Reuters. Walmart’s Flipkart has 11%, and Amazon has 6.2%. Datum predicts the market will reach $41 billion by 2030.
For now, Amazon plans to focus on everyday essentials, avoiding products customers might not reorder.
Analysts at Bernstein warned in July that groceries alone may not be enough to offset high quick-commerce costs, as orders are small and other goods have higher margins.
Amazon also navigates India’s strict rules for foreign e-commerce firms. In 2024, the competition regulator found Amazon favoured some sellers (which Amazon denies), and in January, the government told delivery firms to stop advertising "10-minute" deliveries due to rider safety concerns.
Datum Intelligence founder Satish Meena noted that catching established rivals with loyal customers would be challenging, but Amazon could use offers to convert its existing shoppers to faster delivery.