Amazon Bets $3 Billion on India Quick Commerce

Amazon will invest $3 billion to expand its India quick commerce business by 2030, two sources said, its largest bet yet on a sector where rivals have raced ahead by popularising deliveries within minutes.

The instant delivery market has reshaped how urban Indians shop for everything from milk and chocolates to electronics. Walmart's Flipkart and Amazon, which dominate India's e-commerce space, are late entrants. The $19 billion sector is set to more than double to $41 billion by 2030, according to Datum Intelligence.

Amazon plans to invest $1 billion by the end of 2027 and another $2 billion by 2030. The company said its quick commerce business has crossed $1 billion in annualised gross sales over the past three months, calling it the fastest-growing e-commerce business in Amazon India's history.

The investment will focus on adding small neighbourhood warehouses to the Amazon Now network, strengthening inventory management software, deploying AI tools for demand prediction, and expanding product selection. The company will prioritise daily essentials rather than one-off purchases, which is why it does not stock iPhones like some rivals.

Domestic giants Blinkit, Swiggy, and IPO-bound Zepto control 77 percent of the market with more than 4,500 stores, while Flipkart has over 1,000 stores and 11 percent share. Amazon holds only 6.2 percent and is targeting around 1,300 stores by April next year, up from roughly 750 now.

The push comes amid regulatory scrutiny. India's antitrust watchdog found in 2024 that Amazon gave preference to select sellers, allegations the company denies. The government also ordered companies in January to stop promoting "10-minute" delivery services amid rider safety concerns.