Report says Amazon's biggest India bet yet will expand its rapid-delivery warehouse network and AI-driven inventory tools, as the company races to catch up with rivals in the fast-growing quick commerce market.
Amazon is preparing to invest $3 billion in its Indian quick commerce operations by 2030, marking the company's largest financial commitment in the country to date, according to a Reuters report citing people familiar with the matter.
The report said the investment would be staggered, with roughly $1 billion deployed by the end of 2027 and the remaining $2 billion following over the next few years, as Amazon looks to strengthen its position in a segment where it entered later than several competitors offering ultra-fast deliveries.
Warehouse expansion and inventory upgrades
According to the report, a significant portion of the funding will go toward scaling up Amazon Now, the company's network of compact, locally-based warehouses designed to shorten delivery times by positioning inventory closer to customers. Amazon currently runs close to 750 such facilities and is targeting an expansion to around 1,300 by April next year, according to a source cited in the report.
Alongside physical expansion, the company is also working to strengthen inventory management at these outlets, with planned investment in artificial intelligence tools aimed at forecasting demand more accurately and broadening the range of products available for rapid delivery.
For now, the report noted, Amazon's quick commerce strategy remains centred on daily-use items that customers are likely to reorder frequently. A source quoted in the report said Amazon does not currently plan to stock products unlikely to see repeat purchases, which explains why high-value items such as iPhones are absent from its quick commerce catalogue, unlike some rival platforms.
Fast-growing segment, rising competition
Amazon said its India quick commerce business had already surpassed $1 billion in annualised gross sales over the past three months, describing it as the fastest-growing e-commerce vertical in the company's history in the country.
Quick commerce has increasingly reshaped urban shopping behaviour in India, with consumers now using the format for everything from groceries and snacks to electronics, expecting delivery within minutes rather than days. According to estimates from Datum Intelligence, the overall quick commerce market in India, currently valued at $19 billion, is projected to more than double to $41 billion by 2030.
Amazon, along with Walmart-backed Flipkart, remains among the dominant players in India's broader e-commerce landscape. However, both companies entered the quick commerce space after several homegrown rivals had already established an early lead, prompting the latest wave of aggressive investment to close the gap.
