Amazon to invest $3 billion in India ultra-fast delivery

Amazon plans to invest $3 billion to expand its ultra-fast delivery business in India by 2030, according to two sources with direct knowledge of the plans. The ecommerce retailer aims to deploy $1 billion by the end of 2027 and an additional $2 billion by 2030 to expand its Amazon Now service.

The company declined to comment on the planned investment figure. However, Amazon stated that its quick-commerce business crossed $1 billion in annualized gross sales over the past three months, making it the fastest-growing ecommerce segment in the company's history in India.

India's quick-commerce sector is valued at $19 billion and is projected to reach $41 billion by 2030, according to Datum Intelligence. Domestic players Blinkit, Swiggy, and Zepto currently control 77% of the market with over 4,500 dark stores combined, while Walmart's Flipkart holds 11% with more than 1,000 units. Amazon holds a 6.2% market share and plans to increase its current network of approximately 750 neighborhood fulfillment sites to around 1,300 units by April next year.

The investment will also fund inventory management software, AI demand forecasting tools, and expanded cold-storage infrastructure at each site. Amazon faces regulatory hurdles in India, including strict foreign ecommerce rules, a January government directive restricting '10-minute delivery' marketing, and a pending 2024 antitrust case over alleged seller favoritism, which Amazon denies.