Amazon Bets Big on Indian Quick Commerce Boom with $3 Billion Investment

Amazon plans to invest $3 billion in its quick commerce business in India by 2030, aiming to capture a larger share of the rapidly growing sector. The e-commerce giant currently has a 6.2% market share in the $19 billion industry, which is expected to more than double to $41 billion by 2030.

Amazon will focus on adding new small neighbourhood warehouses to its current Amazon Now service network, allowing for faster deliveries of daily essentials. The company also plans to strengthen inventory management software at stores and deploy AI tools for demand prediction.

The expansion is part of Amazon's efforts to compete with domestic giants such as Eternal's Blinkit, Swiggy, and Zepto, which control 77% of the market. Walmart's Flipkart has an 11% market share, while Amazon aims to reach around 1,300 stores by April next year.

Satish Meena, founder of Datum Intelligence, noted that it will not be easy for Amazon to catch up with rivals who offer quality service and have loyal customers. However, he believes that Amazon could lure shopping website customers to fast deliveries through discounts and promotions.