Amazon India's quick commerce unit accelerates expansion with a target of 100 cities

Traders Union
All News
Financial News
Amazon quick commerce expansion

Highlights

Amazon India's quick commerce unit has now reached more than 60 cities and aims to expand to 100 cities by the end of the year.
Prime members account for 70 percent of daily orders, and the business has now surpassed $1 billion in scale.
Amazon Seller Services' revenue reached Rs 35,574 crore in FY26, up 15.5 percent from FY25, while operating profit stood at Rs 172 crore.

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

Expansion, demand and profitability roadmap

In a conversation with Forbes India, Harsh Goyal, Vice President of Everyday Essentials at Amazon India, said the company began in January 2025 with a limited number of PIN codes, but customer response in the initial weeks exceeded even its most optimistic internal expectations. The company subsequently accelerated its expansion and the business has now reached more than 60 cities, compared with fewer than 50 micro-fulfillment centres and only two cities at the same time last year.

According to Goyal, delivery time alone is no longer a differentiator in quick commerce, as customers expect deliveries within eight to 11 minutes. He said the real differentiation comes from a broad product selection, consistently high quality of fresh and perishable goods, transparent pricing, and an integrated shopping experience with Amazon's larger platform.

The company says Prime members are major users of the service, accounting for about 70 percent of daily orders. Benefits such as lower free-shipping thresholds and, in some cases, higher cashback for Prime customers further drive usage.

Goyal said the business has now grown well beyond $1 billion and handles millions of units daily. According to him, if expansion continues at the current pace, customer usage frequency remains steady, and operational efficiency is maintained across supply chains, last-mile delivery, technology and waste reduction, the model has a clear path to profitability.

Amazon Seller Services Pvt Ltd, which includes the B2C marketplace, seller ecosystem, merchant services, fulfillment and logistics network, Amazon Prime, and advertising services, reported revenue of Rs 35,574 crore in FY26, up 15.5 percent from Rs 30,805 crore in FY25. Operating profit stood at Rs 172 crore during the same period.

Omnichannel model in smaller cities and its market impact

For smaller cities and towns, Amazon India is adopting a different model that converts local retail stores into omnichannel operations. Under this arrangement, customers can continue shopping at stores in person, while consumers within a two- to three-kilometre radius can also view and order the same inventory on Amazon Now, allowing the store to function as a micro-fulfillment centre.

According to the company, 75 to 80 retail stores across 30 cities are currently connected to this model. Goyal says this gives local shopkeepers additional online demand, enables higher sales against fixed costs, and allows quick commerce to reach lower-population areas where building dedicated supply chains may be economically difficult.

However, the company has made it clear that quality, availability, hygiene and freshness standards will not be compromised in this partnership. Amazon considers its quality requirements especially critical for fresh products.

According to Goyal, the platform that can offer the broadest selection, superior quality and freshness, transparent prices, and a reliable experience will win future competition. He says there is a direct link between a better customer experience and operational efficiency, as more satisfied customers buy more, while higher volumes make the supply chain more efficient.

Our previous report discussed increasing regulatory scrutiny of food safety in India's food ecosystem and its business impact, as inspections, notices and licence suspensions intensified from restaurants to quick commerce warehouses. The report also highlighted that amid growing supply-chain complexity, hygiene, traceability and transparency are now not merely compliance requirements, but key foundations of consumer trust and competitive advantage.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.