Amazon Drops $3 Billion into India Quick-Commerce Battle

Amazon is investing heavily in its quick-commerce business in India, with plans to spend $3bn by 2030. The company will focus on growing its Amazon Now service, which handles app orders that reach shoppers within minutes.

The first $1bn of the investment will be spent by the end of 2027, while the remaining $2bn will be allocated between 2028 and 2030. Most of this money will go towards building new small neighbourhood warehouses for Amazon Now, with a goal of having around 1,300 sites by April.

Amazon is playing catch-up in the Indian quick-commerce market, where rivals Blinkit, Swiggy, and Zepto hold an estimated 77% share. Walmart's Flipkart has 11%, while Amazon lags behind with 6.2%. The market is expected to reach $41bn by 2030, up from its current value of $19bn.

Analysts have expressed concerns that groceries alone may not be enough to cover the high costs associated with quick commerce, as orders are typically small and other goods carry higher margins. Amazon will initially focus on everyday essentials, avoiding products that customers are unlikely to order again, such as iPhones.