Amazon Now Hits $1 Billion Revenue In India

Amazon’s quick-commerce service, Amazon Now, has achieved a significant milestone in India, crossing $1 billion in annualised gross revenue. This feat was accomplished in less than two years after the US technology giant entered the country’s rapidly expanding instant-delivery market.

The service has seen rapid growth, with orders doubling every quarter since its launch in India a year ago. Amazon Now currently operates in more than 60 towns and cities, but the company plans to expand its services to 100 Indian cities by Diwali in November.

This expansion will intensify competition in the market, which is currently led by Eternal’s Blinkit, followed by Zepto and Swiggy. Walmart-controlled Flipkart entered the instant-delivery race before Amazon, launching its service in 2024, and now operates in more than 150 cities.

The quick-commerce market in India has grown rapidly, with companies deploying networks of small hyperlocal warehouses and delivery riders to fulfil orders for groceries, electronics, and other products within minutes. According to a report by Google and Deloitte, India’s e-commerce market is projected to nearly triple to $250 billion by 2030, with rapid delivery expected to contribute to the growth.

Global investors, including SoftBank Group and Temasek Holdings, are betting on India’s quick-commerce opportunity, citing factors such as dense urban centres, relatively low labour costs, and a growing base of digital-first consumers. Blinkit, a major growth engine for Eternal, has achieved operational profitability for several quarters while continuing to expand across towns and cities.

The competition in the sector is set to intensify, with Amazon accelerating Amazon Now’s expansion and Flipkart already operating across more than 150 cities. As the instant-delivery market continues to grow, companies will focus on achieving profitability and expanding their services to more cities.

The growth of the quick-commerce market in India is expected to have a significant impact on the country’s e-commerce industry, with rapid delivery becoming a key factor in the market’s expansion. As companies continue to invest in the sector, consumers can expect to see faster and more convenient delivery options, driving growth and innovation in the market.

In the context of India’s growing e-commerce market, the expansion of Amazon Now and other quick-commerce services is a significant development. With the market projected to nearly triple by 2030, companies are investing heavily in the sector, and the competition is expected to drive innovation and growth.

The significance of Amazon Now’s milestone cannot be overstated, as it demonstrates the potential for quick-commerce services to operate at scale in India. As the market continues to grow, companies will focus on achieving profitability, expanding their services, and improving their delivery capabilities to meet the demands of India’s growing base of digital-first consumers.

In conclusion, Amazon Now’s achievement of $1 billion in annualised gross revenue is a significant milestone for the company and the quick-commerce market in India. As the market continues to grow and expand, companies will focus on achieving profitability, innovating, and improving their services to meet the demands of consumers.