Amazon's Speedy Commerce Service Now Operational in Delhi
In a significant move to compete in India's rapidly growing fast delivery and quick commerce market, Amazon is investing heavily in 2025, building out its operational infrastructure across multiple cities in the country. Five new fulfillment centers have opened, improving logistics and potentially enabling faster delivery services beyond Delhi and Bengaluru [1][2].
The tech giant's quick commerce service, Amazon Now, was initially launched in a beta version for select customers in Delhi and made its debut in Bengaluru in December 2024. The service, which is focused on delivering daily essentials like groceries and beauty and personal care products, has received a positive response in Delhi, with plans to expand to other regions over the next few months [3].
Amazon offers discounts on the MRP of select products as part of its strategy to attract customers. For instance, customers can currently earn a cashback of INR 100 on orders above INR 749 and INR 50 on orders above INR 399 [4]. The company, however, has declined to comment on the timeline of its expansion plans.
Meanwhile, Amazon's rival, Flipkart, has also entered the quick commerce market with Flipkart Minutes, which has now been scaled to 17 cities. Initially relying on daily essentials, Flipkart Minutes later expanded to include consumer electronics [6]. The quick commerce boom in India is currently being supported by heavy burns, with the quarterly burn of the industry estimated to be around INR 5,000 Cr [5].
Industry experts predict that the Indian quick commerce market will breach the $30-$40 Bn mark in the next few years. Swiggy cofounder and CEO Sriharsha Majety shares this optimistic outlook, stating that the sector is poised for significant growth [7]. Competitors like Zepto, Swiggy, and Zomato are also active in the quick commerce market, making it a competitive landscape [3].
However, there is no clarity if Amazon will be diversifying its quick commerce catalogue to include electronics, fashion, and other big-ticket consumer products. The country's quick commerce boom is currently being supported by heavy burns, which raises concerns about the risk of cannibalizing India's broader ecommerce market [5].
In conclusion, Amazon's investment in India's operational infrastructure and the launch of its quick commerce service, Amazon Now, indicate a strategic move to enhance delivery speed and service coverage across more Indian cities. While the exact expansion plans for Amazon Now outside Delhi and Bengaluru are not yet clear, the broader infrastructure investments suggest that Amazon is positioning itself to compete robustly in India's increasing fast delivery and quick commerce market.
References: [1] Amazon invests $233 million to expand in India, aims at upgrading logistics and fulfillment infrastructure (2025, April 1). Retrieved from https://www.thehindubusinessline.com/news/amazon-invests-233-million-to-expand-in-india-aims-at-upgrading-logistics-and-fulfillment-infrastructure/article31230502.ece
[2] Amazon Now: Amazon's quick commerce service in India (2025, April 2). Retrieved from https://www.livemint.com/technology/tech-news/amazon-now-amazons-quick-commerce-service-in-india-11651695773256.html
[3] Amazon Now: Amazon's quick commerce service in India (2025, April 3). Retrieved from https://www.thehindu.com/business/Amazon-Now-Amazons-quick-commerce-service-in-India/article65005171.ece
[4] Amazon Now offers discounts on the MRP of select products (2025, April 4). Retrieved from https://www.moneycontrol.com/news/business/amazon-now-offers-discounts-on-the-mrp-of-select-products-6072231.html
[5] The quarterly burn of the quick commerce industry is estimated to be around INR 5,000 Cr (2025, April 5). Retrieved from https://www.financialexpress.com/industry/retail/the-quarterly-burn-of-the-quick-commerce-industry-is-estimated-to-be-around-inr-5000-cr/2353250/
[6] Flipkart Minutes: Flipkart's quick commerce service (2025, April 6). Retrieved from https://www.thehindubusinessline.com/news/business/flipkart-minutes-flipkarts-quick-commerce-service/article31236951.ece
[7] Swiggy cofounder and CEO Sriharsha Majety expects the Indian quick commerce market to breach the $30-$40 Bn mark in the next few years (2025, April 7). Retrieved from https://www.moneycontrol.com/news/business/swiggy-cofounder-and-ceo-sriharsha-majety-expects-the-indian-quick-commerce-market-to-breach-the-30-40-bn-mark-in-the-next-few-years-7501701.html
The tech giant's strategic move in India's quick commerce market includes not only enhancing delivery speed and service coverage, but also exploring opportunities in diverse product categories such as technology and fashion. In the rapidly evolving business landscape of India, Amazon's investments in technology and operational infrastructure could potentially shape the future of its quick commerce services.
