Amazon India is not conceding the quick commerce market to its rivals. The company plans to expand into 100 new cities, build over 1,000 micro-fulfilment centres, and invest $35 billion over the next five years in a significant escalation in a segment dominated by Blinkit, Swiggy Instamart and Zepto.
"We are in the quick commerce party and we are here to win," Samir Kumar, Country Manager at Amazon India, told NDTV Profit. He acknowledged competition but said the market is large enough for multiple players.
Amazon Now, the company's quick commerce service, is currently adding two to three micro-fulfilment centres a day. The service has been taken to cities in the United States, the United Kingdom, Japan and the Middle East, with Latin America next in line.
ALSO READ: SpaceX IPO, US CPI, India Inflation, Oracle Earnings And More: The Week Ahead
Prime membership numbers offer some context for the ambition. Amazon India's Prime base is on track to nearly double from its 2023 levels by end-2026, with more than 70% of new members coming from non-metro cities. Prime members shop five times more frequently than non-Prime customers. Those on Amazon Now shop three times more frequently once they start using the service.
Order volumes on Amazon Now are growing at 25% month on month. The company has invested $40 billion in India between 2010 and 2024 and recently announced a further Rs 2,800 crore for operations expansion. Kumar pushed back on any suggestion that growth is coming at the cost of margins. "For us it's both growth and profitability hand in hand," he said. "We are hitting our profitability marks for Amazon India overall."
The company has also enabled $20 billion in exports from India and is targeting $80 billion over five years, leaning on Tier 2 and Tier 3 expansion and AI investment to get there.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.