Amazon's quick commerce unit Amazon Now is planning an aggressive expansion to 300 cities nationwide, according to Nishant Sardana, Director of Amazon Now. As reported by PTI, the company is currently operating in approximately 30 cities since its launch in January 2025, representing a significant scaling opportunity. Sardana emphasized that the company is "expanding very rapidly" and has "a path to expand to about 300 cities very, very soon," though no specific timeline was provided for the 300-city target. The company is "quadrupling" its efforts to achieve this expansion as quickly as possible.
The quick commerce business has demonstrated robust performance since its inception, with 20-25% month-on-month growth reported by Sardana. According to PTI, the quick commerce industry in India is estimated to be worth approximately USD 20 billion annually, though Amazon Now's specific market share was not disclosed. The company has invested ₹2,800 crores primarily in infrastructure development and partner safety initiatives to support this expansion strategy.
Amazon Now currently operates 650 Micro-Fulfillment Centres (MFCs) across 30 cities, with plans to expand this network to more than 1,000 MFCs shortly. As reported by PTI, the company is implementing an omnichannel strategy that combines company-owned facilities with partner stores to enable faster deliveries. In Hyderabad specifically, the company has established more than 50 MFCs and is witnessing 35% month-on-month growth following the launch of services six months ago. The MFCs are spread across 30 cities, with the company setting up some facilities on its own while banking on omnichannel partner's stores alongside the MFCs to make faster deliveries for customers.
When asked about breakeven expectations, Sardana acknowledged that Amazon Now is in its early stages, stating "it is very much the starting point of this business." According to PTI, the company's focus remains on providing the best selection at competitive prices with fast delivery speeds. Sardana expressed confidence that profitability will emerge over time, noting that Amazon's overall business recently achieved breakeven in India, suggesting similar trajectory for the quick commerce unit. Asked about breakeven timeline, Sardana said "profitability will happen over time" as the company focuses on ensuring "the best selection to offer, at the best value and we are able to deliver the packages at the fastest possible rate."
In Hyderabad, Amazon Now has identified specific product categories that are "over-indexed" in the local market, including grocery items, toys, puja items, and fitness and exercise products. As reported by PTI, the company's delivery strategy focuses on setting up fulfillment centers closer to customers to enable fast deliveries without pressuring delivery personnel to meet specific timeframes. This approach allows for more efficient operations while maintaining customer service standards, with the company able to make fast deliveries by setting up fulfillment centers closer to customers without pressuring delivery personnel to deliver within certain timeframes.
