Amazon India accelerates quick commerce expansion, increasing competitive pressure on Instamart and Zepto

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Amazon's quick commerce expansion

Highlights

Amazon India has invested $40 billion and plans to invest another $48 billion over the next five years.
Amazon Now launched in January 2025 and surpassed a $1 billion sales run rate by July, with 700 micro-fulfilment centres and a target of 1,000 centres by the end of 2026.
Zepto's IPO was delayed by two quarters, Swiggy Instamart is loss-making, while Amazon has begun cost-effective expansion by turning stores into micro-fulfilment hubs in 35 cities.

This article was translated from the original. Read the original version by our correspondent here.

Network expansion and operational strategy

According to a report by Forbes India, Amazon Now is rapidly expanding its quick commerce presence in India, and the company says it is its fastest-growing e-commerce business in the country. Amazon President and CEO Andy Jassy visited a micro-fulfilment centre in Kala Ghoda, Mumbai, during his trip to India in June, after which the company emphasized plans to expand its delivery network to more than 300 cities with deliveries in minutes.

Amazon has invested $40 billion in India so far and intends to invest another $48 billion over the next five years. Amazon India Country Manager Samir Kumar says the company remains confident about India and is operating there for the long term.

According to the company, Amazon Now launched in January 2025 and had surpassed a $1 billion sales run rate by July. Amazon Now currently has 700 micro-fulfilment centres and aims to reach 1,000 centres across 100 cities by the end of calendar year 2026, while Flipkart Minutes has already expanded to more than 1,000 micro-fulfilment centres in 130 cities.

Amazon India Vice President of Operations Abhinav Singh says the company is focused on a sustainable economic model rather than spending more cash on short-term customer acquisition. Amazon's model combines micro-fulfilment centres, large urban fulfilment centres, and its existing logistics network to create a kind of "mesh network," allowing a single order to be fulfilled from different centres within different timeframes.

Market impact and implications for rivals

Amazon's expansion is taking place in a market where Blinkit, Zepto, and Swiggy Instamart already have a strong presence. Available data show that Blinkit has 2,443 stores, Zepto has 1,139 stores, and Instamart has around 1,200 stores, making it necessary for Amazon and Flipkart to scale up quickly.

Satish Meena, founder of Datum Intelligence, says entering late is not necessarily a disadvantage, especially as the market could change substantially over the next 12 to 18 months. The article states that Zepto's IPO plan has been delayed by two quarters, while Swiggy Instamart remains loss-making, meaning the competitive landscape is still not stable.

Amazon's bet is not limited to fast delivery, but also includes quality, broad selection, and leveraging its existing customer base. The company says 80% of its fresh produce comes directly from farms, Prime members shop three times more frequently on Now, and offering delivery in minutes, hours, the same day, or the next day within the Amazon app differentiates it.

The company is also operating a model in 35 cities that converts retail shops into micro-fulfilment centres, where 75 to 80 partner stores are generating additional sales from online demand. This could enable Amazon to expand fast-delivery capacity in densely populated areas, bring local businesses on board, and pursue a lower-cost expansion path compared with players such as Instamart and Zepto.

Our previous report discussed the recent upgrade in the credit rating of Cantabil Retail India Ltd., which was viewed as a sign of the company's improved financial performance and strong market position. The article noted that the rating improvement is expected to increase the prospects for cheaper financing options, better access to capital, and accelerated expansion plans—an important reference point for competition and scale-up strategies across the broader retail sector.

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