Amazon Big Investment Plan in India: Want milk or fruits and vegetables, available in 10 minutes. From puja items to kitchen items and from soap-toothpaste to toilet-floor cleaner… all types of items are delivered within 10 minutes of ordering. This miracle has become possible in your mobile through various platforms like Instamart, Blinkit, Zepto, Otipy. Their use is increasing and so is the market.
Not only domestic companies, but also foreign companies like Flipkart have entered and are expanding the quick commerce market through services like Minutes.
And now Amazon has also decided to expand in India’s quick commerce market. The company is going to invest 3 billion dollars i.e. about Rs 30 thousand crores for this. The company plans to open 550 new stores in the country and this is likely to create thousands of jobs.
Amazon’s biggest investment so far in Quick Commerce
The company plans to invest Rs 28,000 crore on expanding India’s quick commerce business by 2030. Reuters, quoting two people with knowledge of the matter, has said that this will be Amazon’s biggest investment in this sector so far.
According to the plan, the company can invest about $ 1 billion by the end of 2027 and then another $ 2 billion by 2030. This investment will mainly be made to expand the reach of Amazon Now and strengthen the network of small neighborhood warehouses.
Target increased from 750 to 1,300 stores
Currently, delivery is being done from about 750 stores through Amazon Now. The company is aiming to increase their number to around 1,300 by April 2027.
These small warehouses will be built in such areas from where goods can be delivered to customers quickly. The company will also strengthen the inventory management software in the stores. Along with this, investment will also be made in increasing the range of AI tools and products to predict demand.
Amazon declined to comment on the proposed investment amount. However, the company said that its Quick Commerce business has crossed the estimated annual gross sales of $ 1 billion in the last three months. According to the company, this is the fastest growing e-commerce business in the history of Amazon India.
The market could be worth 41 billion dollars
Quick commerce, i.e. the business of delivering goods within a few minutes, has grown rapidly in the urban market of India. This has changed the way of purchasing everything from milk and chocolate to electronics and other goods.
According to Datum Intelligence, India’s quick commerce market is currently worth around $19 billion and is expected to grow to $41 billion by 2030.
The combined share of Eternal’s Blinkit, Swiggy and Zepto which is preparing for IPO in this market is about 77%. The three companies together run more than 4,500 stores. Whereas Flipkart’s share is about 11% and it has more than 1,000 stores. Amazon’s market share is currently around 6.2%.
In which cities will bumper employment opportunities be created?
It is being told that the company’s focus is also on the emerging markets of the country, such as small towns and villages. Bumper employment opportunities are going to be created at these places. Recently, Amazon has decided to open 150 new delivery hubs to strengthen the e-commerce market.
These centers will be opened in small cities of the country, which include cities like Chikkaballapur, Hassan, Meerut, Ramnagar, Raipur, Bhojpur, Bokajan, Jalaun, Jehanabad, Namsai, Purulia, Ribhoi, Senapati, Sivasagar, Udalguri, Ukhrul and Wokha.
However, Amazon faces the challenge of the strong hold of players like Blinkit, Swiggy and Zepto. Apart from this, there has also been concern regarding the safety of delivery employees in Quick Commerce. The Indian government in January had asked companies not to promote such services as ’10 minute’ delivery.
Focus will be on everyday items
Amazon is currently focusing more on everyday essential goods in Quick Commerce. The company believes that there is no need to keep the goods which are less likely to be purchased again in the Quick Commerce store. This is the reason why Amazon Now currently does not have a strategy like other quick commerce platforms regarding products like iPhone.
The company believes that it is difficult to earn more than just grocery in Quick Commerce, because the average value of the order remains low. In such a situation, non-grocery goods with higher prices and better margins can also be important.
Source: ndtv.in
