Amazon CEO Andy Jassy announced that the company will expand its ultra-fast delivery service, Amazon Now, to more than 300 Indian cities [1].
This expansion marks a significant shift in Amazon's strategy to dominate the Indian market by competing directly with local quick-commerce players. The move signals a massive investment in logistics and infrastructure to capture the growing demand for immediate delivery.
During a visit to India on June 24, 2024, Jassy said that the company intends to create the nation's largest "delivery-in-minutes" network [1, 2]. The service currently operates in more than 15 cities [4]. By scaling to over 300 cities, Amazon aims to leverage what Jassy described as the company's fastest-growing e-commerce unit [6].
"The rapid pace of quick commerce adoption is pretty amazing. Amazon 'Now' will be extended to 300 Indian cities," Jassy said in an interview with CNBC TV18 [7].
To support this growth and broader digital ambitions, Amazon is planning a $13 billion investment in AI and cloud infrastructure within India [8]. This financial commitment aligns with the company's goal to integrate advanced technology into its supply chain to manage the complexities of ultra-fast logistics across diverse urban centers.
"India’s delivery-in-minutes model is our fastest-growing business unit, and we are scaling it to over 300 cities," Jassy said [2].
Jassy said that the company is excited to bring the service to these regions to build a comprehensive ultra-fast delivery network [3]. The scale-up will require a significant increase in local hubs, and delivery personnel to maintain the promised speed of service across the expanded geography.
“"The rapid pace of quick commerce adoption is pretty amazing."”
Amazon's aggressive push into quick commerce reflects a broader global trend where traditional e-commerce giants must adapt to 'instant gratification' consumer behavior. By combining a $13 billion investment in AI and cloud infrastructure with a massive physical delivery network, Amazon is attempting to solve the 'last-mile' efficiency problem that often plagues large-scale logistics in India's dense urban environments.
