Amazon India is likely to scale down its Amazon Fresh grocery delivery service across several major cities, as it sharpens focus on its quick commerce offering, Amazon Now, according to a report by UBS Global Research.
The report suggests that Amazon Fresh, currently operational in over 100 cities, could be discontinued in 10–15 top urban markets where Amazon Now is expected to expand aggressively.
Amazon Fresh, which typically delivers groceries within 4 to 24 hours, has traditionally catered to planned, bulk purchases. However, the model is increasingly being challenged by the rapid rise of quick commerce, where deliveries are fulfilled in minutes through hyperlocal networks.
According to the report, Amazon Now is currently operational in key cities including Delhi, Mumbai and Bengaluru, and is expected to expand to 10–15 cities that account for a large share of quick commerce demand.
The service is being scaled through a growing network of dark stores and micro-fulfilment centres, enabling faster delivery times and higher order frequency.
