Amazon’s Rapid Commerce Division Surpasses $1 Billion in Annual Gross Sales
MUMBAI: Amazon’s quick commerce business in India has surpassed $1 billion in gross annualized sales over the last three months, positioning it among the top three players in the market in Delhi and Bengaluru. This growth comes despite Amazon’s late entry into the instant delivery sector, according to Samir Kumar, the company’s India country manager. He noted that orders have doubled each quarter, driven significantly by Prime customers.
Kumar highlighted that Prime members shop approximately three times more on Amazon Now compared to non-Prime customers. However, he also indicated a strong influx of non-Prime users, particularly as the service expands into smaller cities. “As we start reaching smaller cities, we are also seeing a very, very healthy growth in non-Prime customers,” he stated, adding that many of these customers are converting to Prime.
Amazon Now began operations in the March quarter of last year, shortly after Flipkart’s Minutes launch, and has since faced competition from players like Blinkit, Swiggy’s Instamart, and Zepto. Andy Jassy, Amazon’s CEO, emphasized the need for rapid expansion during his visit to India earlier this year, announcing plans to extend Now’s reach to over 300 cities and establish the largest delivery-in-minutes network. By Diwali, the service aims to operate in 100 cities and expand to 1,000 dark stores by year-end, with current orders averaging around 700,000 per day.
The company has captured approximately 10% market share by orders and 14% by value. Kumar noted that about 70% of Amazon’s overall customers come from smaller cities. The service has already launched in locations such as Udupi, Warangal, and Guntur, with plans to expand to Kapurthala and Gurdaspur. Amazon Now intends to cater to both mass and premium price points, focusing on meeting customer needs quickly and efficiently.
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