Amazon Fresh to Scale Down as Focus Shifts to Quick Commerce

Amazon Fresh is set to reduce its operations in 10–15 major cities across India. This decision comes as the company pivots towards its rapid delivery service known as AmazonNow, as highlighted in a report by UBS Global Research. The initiative aims to replace longer delivery times with swift 10-minute delivery in bustling urban areas.

Expansion of AmazonNow

Currently, AmazonNow operates in approximately 6 cities, with plans to broaden its reach to 10–15 additional cities, addressing nearly 80% of the demand for quick commerce.

National Shipping Model Investment

In parallel with the shift to quick commerce, Amazon is heavily investing in its national shipping infrastructure. The company currently manages over 22 substantial warehouses throughout India, with plans to grow this number to between 28 and 32 facilities by mid-2026. This expansion is aimed at enhancing delivery times nationwide.

As Amazon transitions services, Amazon Fresh will be gradually diminished in those urban areas where AmazonNow is introduced. This move indicates a strategic effort by Amazon to formulate a more competitive stance against rivals like Flipkart, Zepto, Blinkit, BigBasket, and Swiggy Instamart, which are also emphasising rapid delivery models.