Bengaluru: Amazon India has announced a significant investment of Rs 2,000 crore to expand and upgrade its logistics and operations infrastructure. This move aims to accelerate delivery speed and enhance service reliability, especially in urban centres, as the e-commerce giant faces stiff competition from ultra-fast delivery startups and a broader sector slowdown.
The investment marks one of Amazon’s largest annual capital deployments in India to date and is focused on strengthening its fulfilment, sortation, and last-mile delivery capabilities.
Amazon also highlighted that the expansion is intended to increase processing capacity and implement advanced technology to serve customers more efficiently while also supporting its workforce and logistics partners.
Entry Into 10-Minute Delivery Market
Amazon’s investment announcement comes on the heels of the company’s pilot launch of ‘Now,’ a 10-minute delivery service currently being tested in select Bengaluru pin codes. The company plans to expand the service to Delhi-NCR and Mumbai later this year, directly entering a competitive space that includes players like Blinkit, Zepto, Instamart, Flipkart Minutes, BigBasket, and JioMart.
Growth Amidst Market Headwinds
This rapid expansion comes at a time when India’s e-commerce sector is showing signs of slowing down. According to a report by Bain & Company and Flipkart, the e-tail market grew by only 10–12% in 2024, compared to over 20% growth in previous years.
Tech and Workforce Investments
Beyond physical infrastructure, Amazon is also investing in technology and workforce tools. Enhancements to its delivery personnel app will introduce features offering greater transparency around earnings and benefits, along with improved navigation tools to streamline deliveries to complex addresses.
