Exclusive-Amazon bets $3 billion on India's fast-delivery boom, sources say

US e-commerce giant Amazon plans to invest $3 billion over the next few years to expand its India quick commerce business by 2030, according to two sources familiar with the plans. This marks Amazon's largest bet yet on a sector dominated by rivals such as Walmart's Flipkart and the company itself. The $19 billion quick commerce sector is projected to double in size to $41 billion by 2030, according to Datum Intelligence.

Amazon has already reported $1 billion in annualised gross sales for its quick commerce business over the past three months, making it the fastest-growing e-commerce business in Amazon India's history. A key focus of the investment will be adding new neighbourhood warehouses to existing Amazon Now service locations, the sources said. Amazon aims to expand the number of stores to around 1,300 by April 2024, from the current 750.

Amazon has only a 6.2% market share in India's quick commerce space, which is dominated by domestic giants like Blinkit, Swiggy, and Zepto, who together control 77% of the market. The planned investment will also go towards strengthening inventory management software, deploying AI tools for demand prediction, and expanding product selection, with a particular focus on daily essentials.

Amazon declined to comment on the planned investment numbers, but Bernstein analyst warned that grocery alone may not cover the high costs of quick commerce.