Amazon is making an aggressive push to scale its quick commerce service, Amazon Now, across India, targeting 100 cities with the establishment of over 1,000 new micro-fulfilment centres (MFCs). This strategic expansion aims to bolster Amazon’s presence in the competitive quick commerce market, particularly in Tier II cities, while also deepening its reach in existing metro areas.
Amazon Now's Ambitious Expansion Details
The company plans to extend Amazon Now's reach to cities such as Pune, Hyderabad, Chennai, Kolkata, Jaipur, Lucknow, Chandigarh, Ahmedabad, and Visakhapatnam. Concurrently, it will enhance its operations in major hubs like Mumbai, Delhi-NCR, and Bengaluru. This initiative is part of Amazon’s broader investment of over Rs 2,800 crore (approximately $300 million) dedicated to strengthening its operational network and improving associate welfare.
Amazon Now offers a diverse range of daily essentials, including groceries, personal care items, fashion and beauty products, small appliances, baby products, pet supplies, and healthcare supplements. Harsh Goyal, Vice President–Everyday Essentials at Amazon India, stated that this expansion will also enable over 16,000 farmers to utilize Amazon's technology and logistics to directly reach customers through sellers on the platform.
Navigating India's Competitive Quick Commerce Landscape
Despite being a relatively late entrant to India's quick commerce race, Amazon's aggressive move signals its intent to capture a significant share of the market. The segment is already dominated by established players such as Blinkit, Swiggy’s Instamart, Zepto, and Flipkart’s Minutes. Blinkit, for instance, currently holds a substantial market share of around 50%.
Flipkart’s Minutes, a direct competitor in the broader e-commerce sector, reportedly operates about 800 dark stores and plans to expand to 1,200 by 2026, with intentions for a standalone application. With speed, scale, and efficient supply chains becoming critical differentiators, Amazon's substantial investment and expansion into quick commerce indicate that the competition in this rapidly evolving sector is far from settled.