MUMBAI: Amazon is investing an additional $300 million (over Rs 2,800 crore) in India to expand its operations network and accelerate its quick commerce business, a segment where the company has been a late entrant and currently holds a smaller market share.
Quick Commerce Expansion
The Seattle-based e-commerce giant aims to more than double the presence of its quick commerce arm, Amazon Now, in the three cities where it currently operates, while also launching the service in new cities. A company spokesperson declined to provide further details.
For context, Amazon Now processes approximately 350,000 orders daily, according to Satish Meena, founder of market research firm Datum Intelligence. In comparison, leading rival Blinkit delivers over 2.5 million orders per day, and Swiggy Instamart handles around 1.1-1.2 million orders daily.
Upgrading Operations Network
Amazon will also enhance its pan-India operations network, which includes fulfilment centres, sortation centres, and delivery stations, to improve delivery speed for its marketplace business, particularly for customers in tier-2 and tier-3 cities. The company stated, “These investments will enable Amazon to serve customers across a wide range of delivery speeds—from minutes to hours to days, based on their needs.” This announcement was made on Thursday.
The investment is part of Amazon’s broader commitment to deploy over $35 billion in India by 2030, focusing on AI-driven digitization, export growth, and job creation.
Technology and Worker Safety
The company plans to invest in technology, including artificial intelligence and machine learning, to make its operations network safer and more efficient. A portion of the capital will also be used to enhance the safety, health, and financial well-being of its workers.
In 2024, Amazon faced scrutiny over workplace safety lapses at its warehouse in the National Capital Region. Last year, the company made a similar investment of approximately $233 million in India.
