Amazon CEO Andy Jassy arrived in India on Wednesday, marking his first visit to the country in over two years. The visit comes as the e-commerce giant intensifies its quick-commerce operations to compete with local rivals Flipkart and Zepto.
AI as a Transformational Force
Speaking at an event in New Delhi, Jassy described artificial intelligence as "the most transformational technology" he has witnessed in his lifetime. He predicted that India will be the birthplace of some of the most critical AI applications globally.
"India's developer community and digital infrastructure make it uniquely positioned to lead in AI," Jassy said. According to the CEO, Amazon is investing heavily in AI tools for its Indian marketplace, including generative AI for product descriptions and customer service chatbots.
Quick-Commerce Expansion
The visit underscores Amazon's push into quick-commerce, where it competes with Flipkart's Quick and Zepto's 10-minute delivery model. Amazon already offers two-hour delivery on essentials in select cities through its Amazon Fresh and Pantry services, but the company is testing 15-minute delivery in Bengaluru and Mumbai.
Industry analysts estimate India's quick-commerce market will grow to $5.5 billion by 2028, up from $1.2 billion in 2025. Amazon's local rival Flipkart recently committed $500 million to its quick-commerce arm, while Zepto raised $340 million in June.
Government and Policy Engagement
Jassy is scheduled to meet with Commerce Minister Piyush Goyal and other officials to discuss India's e-commerce policy framework. The government is drafting new rules that could require platforms to treat sellers equally and prohibit flash sales. Amazon has previously argued that such regulations could stifle innovation.
"We are committed to complying with Indian laws and working with the government to support small businesses," Jassy said. The company claims to have digitized over 6 million small and medium businesses in India and created 1.5 million direct and indirect jobs.
Investment Commitments
During the visit, Amazon announced an additional $500 million investment in its Indian operations, bringing its total investment in the country to over $11 billion. The funds will go toward expanding its logistics network, cloud infrastructure, and AI capabilities.
"India remains a top priority for Amazon," Jassy added. The company's AWS division plans to launch a new data center region in Hyderabad by 2027, its third in India after Mumbai and Chennai.
Competitive Landscape
The quick-commerce battle is heating up as players race to capture market share. Reliance Retail's JioMart and Tata's BigBasket are also expanding their rapid delivery services. Amazon's strategy includes leveraging its Prime subscription base and integrating quick-commerce with its broader marketplace.
According to a report by Redseer Strategy Consultants, quick-commerce now accounts for 15% of India's online grocery market, up from 5% in 2023. The segment is expected to become profitable within two years as order density increases.
