Fortune India Exclusive: Amazon Now expands to Delhi as part of nationwide quick commerce push

Amazon Now, the quick commerce service of the online retailer, has launched in Delhi, weeks after its Bengaluru rollout, said Abhinav Singh, vice president-operations, Amazon India & Australia. 

While Singh did not delve into the details of further expansion plans, he told Fortune India that the company’s strategy will differ from that of other quick commerce players, despite being a late entrant into the market.

“We are not calling (the rollout of Amazon Now) a pilot. It (has been) launched in Bengaluru; it is launched in Delhi. All of it is done from the point of view that it has to be a meaningful service across the country, so it will not be something that is limited by city boundaries,” Singh said.

In June, Amazon India launched its quick commerce service in three Bengaluru pin codes. The Bengaluru launch followed a pilot that began in December 2024. The service promises ultra-fast deliveries within 10 minutes for daily essentials and groceries, with a curated selection targeting Prime members. Delhi is the second city offering the ultra-fast delivery service. Fortune India has, however, not been able to independently confirm whether the service is available in all pin codes.

Talking about why Amazon India has entered the quick commerce space only now, “I honestly don't look at it as slow or fast. The reason I don't is (because) e-commerce is at such a nascent stage that there is room for everyone. No one else has to fail for Amazon to succeed, or Amazon doesn't have to do badly for someone else to succeed. There is such a large opportunity for all of us from an India perspective.”

“We believe that in the long term, we don't want to break customer trust; we are focused on making sure that our associates and customers are always safe,” Singh added.

India’s quick commerce sector has witnessed explosive growth, with platforms like Blinkit, Zepto, and Swiggy Instamart dominating the space.

According to Kearney, the quick commerce grocery market is expected to grow threefold between 2024 and 2027, reaching about ₹1.5-1.7 lakh crore.

“During this period, quick commerce is expected to extend to all towns with a population of 500,000 or more while achieving deep penetration among India 1 households (households with an annual income of ₹6 lakh or more),” Kearney stated in a June note.

Despite rising consumer adoption, quick commerce in India remains a high-burn, low-profit business. According to FT, HSBC estimates that for the market to reach $30 billion, it would require 60 million users placing two orders a week at a ₹20-25 delivery fee.

While consumers enjoy the convenience, the reliance on low prices and discounts makes profitability elusive. In addition to profitability scares, Zomato’s Blinkit and IPO-bound Zepto recently faced regulatory setbacks, with the Maharashtra FDA suspending licences of one dark store each operated by the two companies.

Yet, Singh remains optimistic. “From an outlook perspective, whether it's the size of the economy or the per capita GDP, everything is (going to) grow. Within that, retail will rise. Within retail in the market segment, e-commerce is still single digits. If you look at a large economy, which is set to expand even more rapidly, e-commerce within retail is a very large opportunity,” Singh said.

Singh emphasises that while trends may change, customers will continue to want speed, reliability, and safety, even in the long run. He adds that Amazon’s focus is on building a long-term, sustainable service that consistently delivers a wide selection quickly and safely, rather than simply chasing current market trends.

“What we have built over the past 13 years is implicit trust and, in many ways, shaped e-commerce in India. Whatever we do, we want to make sure that we are able to offer it for a long period... because customers will want to find the larger selection at the faster speed,” Singh said.

On $233 million investment in India

Speaking on the sidelines of the Prime Day launch, Singh shared that Amazon India has added five new fulfilment centres. These additions contribute 1.8 million cubic feet to its existing storage capacity of 43 million cubic feet. Currently, Amazon has fulfilment centres in as many as 17 states. More fulfilment centres are expected to be added soon, across a mix of both Tier-I and Tier-II cities. On Monday, Amazon India also announced 30 new delivery stations, mainly in Tier-II and Tier-III cities, including Panchkula and Mohali, to boost last-mile deliveries. These additions are part of Amazon's ₹2,000-crore ($233 million) investment announced on June 19.

"We continue to work on improving the technology when it comes to operating our buildings work, to working with associates. We always look at (investments) from the point of view of what is the right thing to do (which includes) some very visible ones," Singh shared.

In the upcoming months, with a few before Amazon's flagship Great Indian Festival (AGIF), Singh confirmed that the company will "see a similar theme" in terms of the additions to its infrastructure across the country.

"In terms of the delivery stations, as the customer demand grows, we will continue to invest both in Tier-I and Tier-II (cities)," Singh added.