Amazon to invest $3 billion to expand quick commerce in India by 2030

Amazon is planning to put $3 billion into its India quick commerce business by 2030, making it the company's biggest investment yet in a market where it has fallen behind rivals offering deliveries within minutes, Reuters reported on Thursday, citing two people familiar with the plans.

The company is expected to spend $1 billion through the end of 2027, followed by another $2 billion by 2030.

Amazon said its quick commerce business had crossed $1 billion in annualised gross sales in the past three months, calling it "the fastest-growing e-commerce business in Amazon India's history."

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Much of the investment will go towards expanding Amazon Now's network of small warehouses located closer to customers, the report said.

Amazon currently operates about 750 such stores and is aiming to take that number to around 1,300 by April next year, a source told Reuters.

The company is also looking to improve inventory management at these stores. Other planned spending includes AI tools to forecast demand and a wider range of products.

For now, Amazon is concentrating on products that customers are likely to buy regularly. "The focus will be daily essentials. If the order is unlikely to be repeated, Amazon does not plan to stock it right now in quick commerce," the source was quoted as saying.

That approach explains why Amazon does not currently offer iPhones through its quick commerce business, unlike some competitors.

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Amazon trails market leaders

Quick commerce has changed shopping habits in India's cities, with consumers increasingly ordering everything from groceries and chocolates to electronics for rapid delivery.

The market, currently valued at $19 billion, is expected to grow to $41 billion by 2030, according to Datum Intelligence.

Amazon and Walmart-owned Flipkart are among the biggest names in India's broader e-commerce market but entered quick commerce later than their rivals.