According to a UBS Global Research report, Amazon is preparing to scale down its 4-24 hour grocery delivery service, Amazon Fresh, in several major Indian cities as it sharpens focus on its quick commerce offering, AmazonNow. The transition is expected to play out across 10-15 large urban markets where AmazonNow is being expanded, effectively replacing Amazon Fresh in these locations. As reported by The Times of India, this move underscores Amazon's shift towards faster fulfillment models, as competition intensifies in India's quick commerce segment dominated by players such as Blinkit, Zepto and Swiggy Instamart.
According to the UBS research note, AmazonNow's average order value (AOV) is ₹260-300, while the mature stores (more than 6 months old) have a higher AOV of ₹320-360. The primary reason for low AOV compared to competitors Blinkit and Instamart is that AmazonNow is currently operating in FMCG and only recently adding other categories such as electronics, toys etc. AmazonNow is currently live in six cities including Bengaluru, Mumbai and Delhi, with the service being positioned as the company's primary vehicle for rapid delivery.
As reported by The Times of India, AmazonNow operates roughly 450 dark stores at present and is adding about two stores a day, with the network expected to scale up significantly over the next year. The company currently operates over 20 large warehouses for its broader ecommerce operations and is expected to increase this footprint further by mid-2026 to improve delivery timelines across India. This rapid expansion supports the company's quick commerce strategy and faster fulfillment models.
According to the report, Amazon Fresh, which remains operational in over 100 cities, will continue in markets where quick commerce is yet to be rolled out. However, in cities where AmazonNow is introduced, Fresh is likely to be phased down, reflecting a broader shift from scheduled grocery deliveries to instant fulfilment models. The report is based on channel checks and expert conversations and reflects third-party assessments of Amazon's strategy rather than company-confirmed plans.
