New Delhi: Amazon is planning to invest $3 billion in its quick commerce business in India by 2030, according to two people with direct knowledge of the plans, as the US company increases its efforts to compete in a rapidly growing market.
The reported investment would include $1 billion by the end of 2027 and another $2 billion through 2030, according to the sources. Amazon has not publicly confirmed the figure and declined to comment on the reported investment plan.
The reported investment would be Amazon's biggest reported commitment yet to India's quick commerce sector, where companies compete to deliver groceries, household goods and other products to customers within minutes.
Amazon's quick commerce service, Amazon Now, has expanded rapidly in recent months. The company said in September that the service had crossed $1 billion in annualised gross sales in India, based on sales during the previous three months.
The figure represents a sales run rate based on recent performance and does not mean Amazon Now has already generated $1 billion in sales during a full year.
Amazon said Amazon Now had expanded to more than 60 cities and towns in India, four times the number it served less than 10 weeks earlier. The company is targeting 100 cities by Diwali and has previously announced plans to eventually take the service to more than 300 cities.
The sources said Amazon was targeting about 1,300 fulfilment centres by April 2027, compared with more than 750 micro fulfilment and urban fulfilment centres currently.
The reported spending would also support inventory management, artificial intelligence based demand forecasting and a wider range of products, according to the sources. Amazon is initially focusing on everyday essentials while also increasing the selection available through its fast delivery network.
Amazon has already announced major investments in infrastructure for the service. In June, it said it would launch more than 100 urban fulfilment centres. These larger facilities are designed to provide a wider selection of products while keeping inventory close enough to customers for delivery within minutes.
Amazon has said the network will offer groceries, personal care products, fashion and beauty items, small appliances, home and kitchen products and other daily essentials.
The expansion comes as Amazon faces strong competition from Blinkit, owned by Eternal, Swiggy Instamart, Zepto and Flipkart Minutes. These companies have already built large quick commerce networks and hold a substantial share of India's rapidly growing market.
Market research cited by Reuters puts the value of India's quick commerce sector at about $19 billion. The sector could more than double to $41 billion by 2030, according to the same research.
Amazon's expansion also follows other investments in its India operations. In April, the company announced an investment of more than 2,800 crore rupees, about $300 million, to strengthen its operations network and support the safety, health and financial wellbeing of delivery associates in India.
The investment was intended to support Amazon's broader operations, including its core ecommerce and quick commerce networks.
The rapid expansion of Amazon Now comes as the quick commerce industry faces questions about profitability, delivery worker safety and the cost of maintaining large networks of fulfilment centres.
India has also taken steps to address concerns surrounding extremely fast delivery targets. In January, major delivery companies agreed to remove references to 10 minute delivery targets following government intervention linked to concerns about delivery worker safety.
For Amazon, the reported investment would significantly expand its presence in India's quick commerce market. While the $3 billion figure has not been officially confirmed by Amazon, the company's rapid expansion of Amazon Now and its publicly announced fulfilment plans show its growing focus on the sector.