Online retailer Amazon announced the launch of over 100 specialised Urban Fulfillment Centers across India, a move aimed at significantly expanding product selection on its quick commerce service, Amazon Now, ahead of Prime Day 2026. According to Amazon, the new fulfillment infrastructure will increase the range of products available for delivery in minutes by four times, complementing the thousands of essential items already offered through Amazon Now. The facilities have been rolled out across Delhi-NCR, Mumbai, Bengaluru, Chennai, and Hyderabad, building on the company's previously announced expansion to 100 cities through a network of more than 1,000 Micro-Fulfillment Centers. As reported by Abhinav Singh, Vice President - Operations, Amazon India, APAC, Middle East, Africa and Turkiye, the company has designed this as a two-tier network architecture, with one UFC potentially serving as both a local MFC for dense neighbourhoods and a wider-zone node for surrounding areas.
The launch aims to offer customers four times more product choices across all item categories, including apparel, electronics, jewellery, footwear, luggage, watches, furniture, musical instruments, groceries, personal care products, baby products, pet supplies, and healthcare supplements. According to Amazon, one UFC will service four to five micro areas simultaneously, with the company targeting roughly one UFC for every four to five MFCs in the current buildout. The expanded infrastructure will help improve inventory availability while supporting faster deliveries across a broader range of categories, with the company bringing inventory closer to customers to enable faster deliveries. Amazon Now is currently growing at 25% month-on-month, with Prime members on the platform having tripled their shopping frequency, as reported by Abhinav Singh.
The launch of these centres, ahead of Prime Day 2026, which begins on June 23, represents a significant expansion that will offer four times more choices over thousands of essentials already available on Amazon Now. According to Abhinav Singh, Vice President - Operations, Amazon India, APAC, Middle East, Africa and Turkiye, the company remains focused on offering customers a wider selection, value and faster delivery speeds across categories. The Urban Fulfillment Centers serve as a larger-format layer within the company's operations network, enabling a broader assortment while maintaining rapid delivery timelines. The move adds a second tier to Amazon Now's existing infrastructure of over 1,000 micro-fulfillment centers across 100 cities, adding a new layer of infrastructure designed to significantly expand selection while maintaining fast delivery speeds.
The expansion comes amid growing competition in the quick commerce segment from players such as Blinkit, Zepto, Instamart, Flipkart Minutes and BigBasket. On cost economics, Abhinav Singh argued that larger buildings, while more expensive in absolute rental terms, lower per-order costs through transportation optimization — particularly order batching and truck fill rates. The company's cost priority stack includes topology optimization first, building automation second, hub-to-MFC transport third, and last-mile delivery last. This expansion is part of Amazon's investment of more than ₹2,800 crore (approximately USD 300 million) to strengthen its operations network while enhancing associate safety, health and financial wellbeing. The company recently announced plans to increase the number of Ashray centres from 100 to 250 during 2026, demonstrating the company's commitment to worker welfare alongside its infrastructure expansion.
