Amazon is preparing a major expansion of its quick-commerce business in India, with plans to invest as much as $3 billion through 2030 as the US e-commerce giant tries to close a substantial gap with local rivals that have reshaped how Indian consumers buy everyday goods.
The planned investment would represent Amazon’s largest commitment yet to India’s rapidly expanding quick-commerce market. Two people with direct knowledge of the company’s plans told Reuters that Amazon intends to invest $1 billion by the end of 2027, followed by another $2 billion through 2030.
Amazon declined to comment on the planned investment figures. The company said, however, that its quick-commerce operation has generated more than $1 billion in annualized gross sales over the past three months, describing it as the fastest-growing business in the history of Amazon India.
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India’s quick-commerce market is currently worth about $19 billion and is projected to more than double to $41 billion by 2030, according to Datum Intelligence. That growth has created a market in which Amazon- and Walmart-backed Flipkart, despite their dominance in conventional Indian e-commerce, have been playing catch-up with companies that built their businesses around rapid delivery.
Eternal’s Blinkit, Swiggy and Zepto together control about 77% of the market and operate more than 4,500 stores, according to Datum data. Flipkart has more than 1,000 stores and an estimated 11% market share, while Amazon has about 6.2%.
Amazon’s planned spending therefore has a major infrastructure component. The company is expected to expand its network of small neighborhood warehouses, known as dark stores, from which Amazon Now orders can be assembled and dispatched quickly.
One source said Amazon is targeting about 1,300 stores by April next year, compared with roughly 750 currently.
The model requires a fundamentally different logistics architecture from Amazon’s traditional e-commerce operation. Rather than relying primarily on large fulfilment centers serving broad geographic areas, quick commerce depends on a dense network of smaller facilities located close to customers.
Amazon’s investment is expected to go beyond simply adding stores. The company plans to strengthen inventory-management software, use AI to forecast demand, and broaden the selection of products available through Amazon Now.
The focus, at least initially, will remain on frequently purchased essentials.
“The focus will be daily essentials. If the order is unlikely to be repeated, Amazon does not plan to stock it right now in quick commerce,” one source said.
That approach helps explain why Amazon is not currently prioritizing products such as iPhones through Amazon Now, even though some competitors have expanded quick-commerce offerings into expensive electronics.
The economics of that strategy remain a central challenge.
Quick-commerce operators must maintain inventory in numerous small facilities while employing delivery riders to complete orders within extremely short periods. Average grocery orders are relatively small, making it difficult to cover the cost of the delivery infrastructure from groceries alone.
Bernstein warned in a July note that grocery products by themselves may not generate sufficient economics for the sector because of low average order values, while non-grocery products can offer higher prices and margins.
Amazon’s response appears to be an attempt to improve the underlying economics before aggressively expanding the product range. One source said the company wanted its model to be operationally sound, including providing cold-storage rooms at each store rather than relying simply on refrigerators.
The approach could increase upfront costs, but it also highlights the operational complexity of competing in a market where speed has become a central selling point.
Satish Meena, founder of Datum Intelligence, said Amazon faces a difficult task in challenging established players that have built strong customer relationships around rapid delivery.
“It took some time for Amazon to commit. There appears to be a realization that this is a model they have to invest in,” Meena said. “They are doing discounts, which can help lure current Amazon customers to quick commerce.”
Amazon has already begun using incentives to encourage existing customers to try the service. Amazon Now is offering selected customers 20% cashback on initial orders above 499 rupees and free delivery on eligible orders above 99 rupees.
The company’s advantage is the large customer base already using its conventional shopping platform. Rather than having to build consumer awareness from scratch, Amazon can potentially move existing customers into faster delivery through the main Amazon app.
The investment also comes with regulatory and operational risks.
India has tightened scrutiny of the quick-commerce sector as the rapid growth of delivery services has raised concerns about rider safety. The government ordered companies in January to stop promoting services as “10-minute” deliveries, adding pressure to an industry whose marketing has often centered on extreme speed.
Amazon also operates under India’s restrictions on foreign e-commerce companies. Its regulatory exposure includes a 2024 antitrust case in which India’s competition watchdog found that the company had favored certain sellers. Amazon has denied the allegations.
The competitive structure makes the timing of Amazon’s investment particularly significant. Blinkit, Swiggy and Zepto have already established large networks and accumulated considerable operational experience, while Flipkart has also expanded aggressively.
Amazon is therefore not entering an undeveloped market. It is attempting to build sufficient density and customer usage in a sector where rivals have already spent years establishing neighborhood-level logistics networks.
The opportunity is that India’s quick-commerce market is still expanding rapidly. If the overall market reaches the projected $41 billion by 2030, Amazon would not necessarily need to displace existing leaders to build a substantial business. Its existing e-commerce customer base could provide a large pool of potential users as the company expands its network.
The $3 billion commitment also signals a broader change in Amazon’s approach to India. The company has already identified the country as a major growth market across e-commerce and cloud services, and quick commerce gives it another route into the increasingly digital consumption habits of India’s urban population.