Amazon e-commerce and logistics expansion in India

Amazon is undertaking a multi-stage expansion of its logistics and e-commerce infrastructure in India. Initially, the company announced a ₹2,800 crore investment to bolster its operations ahead of the festive shopping season. This phase focused on increasing storage capacity by 50% through the addition of 20 fulfillment centers, six sortation centers, and 150 last-mile delivery stations, with a strategic emphasis on decentralizing services into Tier 2 and Tier 3 markets. Following this infrastructure boost, Amazon announced a larger long-term commitment to its quick-commerce segment, planning to invest up to $3 billion by 2030. This strategy involves a phased capital injection of $1 billion by the end of 2027 and an additional $2 billion through 2030. The investment aims to expand the network of neighborhood warehouses, or ‘dark stores’, from approximately 750 to 1,300 by April of the following year, while utilizing AI-driven tools to improve inventory management and compete with domestic rivals. This quick-commerce division has recently become the fastest-growing segment in the company’s Indian history, surpassing $1 billion in annualized gross sales. Despite this momentum, Amazon currently holds a 6.2% market share, trailing domestic competitors Blinkit, Swiggy, and Zepto, which collectively control roughly 77% of the market. To support its broader technological and logistics infrastructure, Amazon has also introduced a free ‘Seller Assistant’ AI tool to help third-party merchants automate workflows such as pricing, cataloging, and inventory management. In a recent acceleration of its entry into the market via its rapid delivery service, Amazon Now, the company is allocating $300 million this year to triple its number of local fulfillment centers, or ‘dark stores’, to over 1,000 facilities. This expansion is intended to grow the service's reach from 15 cities to approximately 300 cities across India.