Amazon is planning to invest $3 billion in its India quick commerce business by 2030, according to two people familiar with the company’s plans. The investment is expected to be split between $1 billion by the end of 2027 and another $2 billion through 2030. Amazon did not comment on the investment figures reported by Reuters.
The planned spending comes as quick commerce has become a major part of urban shopping in India, with platforms offering deliveries within minutes across categories ranging from groceries and daily essentials to electronics. The market, currently estimated at about $19 billion, is projected by Datum Intelligence to more than double to $41 billion by 2030.
Amazon has entered the segment later than domestic players such as Blinkit, Swiggy Instamart and Zepto. The three companies together account for 77% of the quick commerce market, while Amazon has a reported 6.2% share and Walmart-owned Flipkart has about 11%, according to Datum Intelligence
A significant portion of the planned investment is expected to go towards expanding Amazon’s network of small neighbourhood warehouses used by its Amazon Now service. The company currently operates around 750 micro-fulfilment and urban fulfilment centres, with plans to increase its footprint as it expands the service across more locations.
The investment is also expected to support inventory management technology, AI-based demand forecasting and a broader product selection. Amazon is focusing on everyday purchases and essentials, rather than relying primarily on higher-value products that consumers may purchase less frequently.
The expansion comes as Amazon and Flipkart increase their presence in a segment that has been built largely by Indian quick commerce companies.
The rapid growth of the sector has also brought regulatory and operational scrutiny. India’s government ordered quick commerce companies in January to stop promoting services explicitly as ‘10-minute’ deliveries, amid concerns including rider safety.
Amazon also continues to operate within India’s regulatory framework for foreign e-commerce companies and faces a pending antitrust matter related to allegations over preferential treatment of certain sellers, which the company denies.
FAQs
- What is quick commerce?
Quick commerce is a type of online shopping that delivers products such as groceries, food and daily essentials within a short time, often in minutes.
- Why is Amazon investing in quick commerce?
Amazon is investing in quick commerce to expand its fast-delivery services and meet the growing demand for quicker online shopping in India.
- What is Amazon Now?
Amazon Now is Amazon’s quick commerce service in India, offering fast delivery of groceries, household essentials and other everyday products.
- How much is Amazon investing in India?
Amazon plans to invest $3 billion in its India quick commerce business by 2030, according to people familiar with the company’s plans.
