Amazon plans a $3 billion push into India's quick commerce by 2030

Amazon plans to invest $3 billion to expand its quick commerce business in India by 2030, two people familiar with the plan told Reuters — the company's biggest bet yet on a sector where rivals raced ahead by popularising deliveries within minutes.

The investment plan

By the end of 2027 Amazon will put in $1 billion and another $2 billion by 2030, the sources said, in a plan that has not been reported before. The company declined to comment on the numbers, but said its quick commerce sales crossed $1 billion in annualised gross terms over the past three months — "the fastest-growing e-commerce business in Amazon India's history," according to Amazon.

A key focus will be adding small neighbourhood warehouses to the Amazon Now network, the service that sits inside the main Amazon app and ships orders quickly. Amazon is also spending on inventory-management software, AI tools for demand prediction and a wider product selection. Daily essentials come first: if an order is unlikely to be repeated, the company does not plan to stock it — one reason it does not sell iPhones via quick commerce, unlike some rivals.

A $19 billion market

Datum Intelligence values India's quick commerce sector at $19 billion and expects it to more than double to $41 billion by 2030. Eternal's Blinkit, Swiggy and IPO-bound Zepto control 77% of the market with more than 4,500 stores, while Walmart's Flipkart has over 1,000 stores and an 11% share. Amazon holds 6.2% and aims for around 1,300 stores by April next year, up from roughly 750 now.

Challenges ahead

Analysts doubt groceries alone can cover quick commerce's high costs: Bernstein warned in July that average order values are low, while "non-grocery items carry higher prices and higher margins." Satish Meena, founder of Datum Intelligence, says catching up with rivals known for quality service and loyal customers will not be easy, though Amazon can pull its existing shoppers into fast delivery. Amazon Now currently offers 20% cashback on some first orders above ₹499 ($5.20) and free delivery above ₹99 ($1) for select customers.

The sector's growth has also drawn regulators' attention. Amazon faces tight Indian rules for foreign e-commerce firms and a pending 2024 antitrust case, in which the watchdog found it favoured select sellers — allegations the company denies. In January, India's government told companies to stop promoting such operations as "10-minute" services, amid concerns about rider safety.