Amazon (NASDAQ:AMZN) plans to invest $3 billion in its Indian quick-commerce operations by 2030 as it expands its Amazon Now network, Reuters reported, citing two people with direct knowledge of the plans.
According to the report, Amazon intends to invest $1 billion by the end of 2027, followed by another $2 billion through 2030.
Amazon declined to comment on the reported investment figures, Reuters said. The company separately confirmed that its quick-commerce operation generated more than $1 billion in annualised gross sales over the past three months, describing it as the fastest-growing e-commerce business in Amazon India’s history.
A significant portion of the reported investment is expected to fund additional small neighbourhood warehouses used by the Amazon Now service.
One of the sources cited by Reuters said Amazon is targeting approximately 1,300 locations by April next year, compared with around 750 currently.
The planned spending is also expected to cover inventory-management software, artificial intelligence tools used to forecast demand and an expansion of the product range available through the service.
According to the report, Amazon intends to concentrate its quick-commerce offering on frequently purchased everyday products while excluding some items that are less likely to generate repeat purchases.
One source said this strategy explains why Amazon does not currently offer iPhones through its quick-commerce service, unlike some competitors.
The same source disputed the view that Amazon entered the Indian quick-commerce market late, saying the company had focused on developing its operating model before expanding. The source cited the installation of cold-storage rooms in each location, rather than relying solely on refrigerators, as one example.
Data from Datum Intelligence cited by Reuters estimated Amazon’s share of India’s quick-commerce market at 6.2%.
The sector is currently valued at approximately $19 billion and is projected by Datum to more than double to $41 billion by 2030.
Eternal’s Blinkit, Swiggy and Zepto together account for 77% of the market and operate more than 4,500 locations, according to the figures cited in the report.
Walmart’s Flipkart operates more than 1,000 locations and holds an estimated 11% market share.
These market-share figures and forecasts are third-party estimates and may differ depending on methodology and future market developments.
A Bernstein note published in July said grocery sales alone may not be sufficient to cover the operating costs associated with quick commerce because average order values are relatively low. The firm said non-grocery products can provide higher selling prices and margins.
Datum Intelligence founder Satish Meena said competing with established operators that already have repeat customers could be challenging, although Amazon could seek to move existing customers towards faster delivery services, including through discounts.
Amazon Now is currently offering 20% cashback on some initial orders above 499 Indian rupees and free delivery on orders above 99 rupees for selected customers, according to the report.
Reuters also reported that the Indian government instructed companies in January to stop promoting “10-minute” delivery services amid concerns over delivery-rider safety.
Amazon operates under India’s regulations governing foreign-owned e-commerce businesses.
The report also referred to a pending antitrust case dating from 2024 in which India’s competition regulator alleged that Amazon had favoured selected sellers. Amazon denies the allegations, and the matter remains unresolved based on the information supplied.
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