Amazon is intensifying its efforts to capture a share of India’s rapidly growing quick commerce market, committing to spend $3 billion by 2030 to expand its presence. The move comes as the U.S.-based e-commerce giant seeks to catch up with established local players in a sector that has transformed Indian consumer behavior with ultra-fast delivery services.
Earlier plans announced by Amazon included a $300 million investment to more than triple its network of localized warehouses, known as “dark stores,” increasing their number to over 1,000. This expansion has enabled the company’s Amazon Now arm to operate in around 300 cities across India, up from just 15 previously. These dark stores serve as fulfillment centers for a wide range of products, allowing delivery times to shrink from hours to minutes.
The quick commerce segment in India, valued at $8 billion according to a Deloitte and Google report, is forecast to grow to $50 billion by 2030, serving an estimated 70 million shoppers with much of the growth coming from smaller cities. The market is characterized by a fleet of gig economy workers—often scooter riders—who deliver groceries, snacks, and other goods to customers’ doorsteps, reshaping shopping habits in congested urban areas.
Despite accounting for only about 10 percent of India’s overall online shopping market, quick commerce has increasingly encroached on the territory of traditional digital retail platforms and millions of local small shops. Industry observers note the intense competition, as firms race to establish early dominance in new cities. “The customer is asking for it — if you are not ready someone else will give it and then they will take the market,” said Satish Meena, founder of consumer research firm Datum Intelligence.
Local companies Blinkit, Swiggy, and Zepto have led the sector’s expansion but now face competition from Amazon as well as other established players such as Walmart-owned Flipkart and Indian conglomerates Reliance Industries and the Tata Group. The market’s rapid evolution caught some operators by surprise; Amazon executives reportedly debated whether the surge in quick commerce was a passing trend before deciding to scale up.
The business model relies heavily on a large, low-cost labor force, with many gig workers supplementing their incomes amid India’s per capita GDP below $3,000. However, the labor practices underpinning the sector have drawn regulatory scrutiny. Indian authorities have urged platforms to drop unrealistic promises of 10-minute deliveries, citing safety and exploitative concerns. Industry figures, including Deepinder Goyal, founder of Blinkit’s parent company Evermeal, have pushed back against such criticisms, framing the gig economy as providing voluntary economic opportunities.
Maintaining quality and hygiene standards has posed challenges amid rapid expansion. Regulators have reported issues such as cockroach infestations, expired products, and spoiled produce at some dark stores operated by Zepto and Swiggy. Tata-owned BigBasket co-founder Hari Menon described quick commerce as a “structurally tough” business, requiring a combination of order density, average order value, and favorable margins to be profitable.
Among competitors, Blinkit holds a near-50 percent market share and operates about 2,400 dark stores, double the number of Swiggy’s. The company reported its first quarterly profit late last year, attributed to a broad inventory and greater reliability. Still, industry analysts caution that most players remain unprofitable and rely heavily on cash burn and promotional offers to gain market share. Srikumar Krishnamurthy, a senior vice president at rating agency ICRA, noted that investors will eventually demand returns rather than continued losses.
Despite the intense competition and financial pressures, none of the major quick commerce companies appear ready to pull back. Blinkit’s founder stated, “We also have deep pockets. If it comes to outspending Amazon, we can,” underscoring the fierce battle for dominance in India’s burgeoning instant delivery market.