Amazon is preparing a $3 billion investment through 2030 to expand its quick-commerce operations in India and narrow the gap with Blinkit, Swiggy and Zepto.
The expansion will focus on Amazon Now, including a larger network of local warehouses and stronger AI-powered inventory management to support rapid deliveries.
Amazon is targeting a fast-growing India’s quick-commerce sector, valued at approximately $19 billion, and is projected to more than double to $41 billion by 2030.
Amazon is planning to invest around $3 billion in expanding its quick-commerce business in India by 2030, according to two people familiar with the plans. The investment is aimed at helping the US e-commerce giant compete more effectively with established players such as Blinkit, Swiggy and Zepto.
The company plans to expand its Amazon Now warehouse network and strengthen AI-based inventory management to support faster deliveries. Quick commerce has transformed shopping habits in urban India, with platforms delivering products ranging from groceries and chocolates to electronics within minutes.
Amazon and Walmart-owned Flipkart entered the sector after domestic rivals had gained an early lead. India’s quick-commerce market, currently valued at around $19 billion, is expected to more than double to $41 billion by 2030, according to Datum Intelligence.
Amazon Plans Major Expansion of Its Amazon Now Store Network
A sizeable portion of Amazon’s proposed investment will fund the addition of small neighbourhood warehouses to its Amazon Now network, which supports rapid deliveries. The company views India as a key growth market and is also expanding its data center, cloud, and e-commerce operations in the country.
However, Amazon faces regulatory challenges under India’s rules for foreign e-commerce companies, including a pending 2024 antitrust case over alleged preferential treatment of select sellers claims the company denies. The rapid expansion of quick commerce has also raised concerns about rider safety, prompting the Indian government in January to direct companies to stop promoting “10-minute” delivery services.
Ali Merchant is a seasoned financial markets professional specializing in technical analysis, treasury & capital markets, trading, research, and fund management. He is Strategic Advisor at Musaffa and Founder of TWT Learning, which provides education, research, and advisory services to fund and hedge managers and family offices. Ali has traded FX, FX options, US stocks & options, indices, commodities, oil and metals futures, and holds a CMT charter with memberships in AAPTA and CMT, US & Canada. He has worked with ABN AMRO, Thomson Reuters/Refinitiv, MAK Allen & Day Capital, and Bridge Information Systems, produced TA reports for Bloomberg and Reuters, and trained 2,000+ market participants across North America, the GCC and Asia.
