Amazon Now targets 100 Indian cities by Diwali after topping $1bn annualised sales
Amazon India says its quick-commerce service has reached 60-plus cities with 750-plus micro-fulfilment and urban fulfilment centres. The company is adding local retail partners as omnichannel hubs, while Prime-led demand and supply-chain scale are central to its profitability plan.
What happened
Amazon India · Amazon Now has surpassed $1 billion in annualised sales and expanded to 60-plus Indian cities via 750-plus fulfilment centres. Amazon targets 100
Key facts
- $1 billion annualised gross sales (about Rs 9,000 crore)
- Orders doubling every quarter
- 60+ cities and towns
- 750+ micro-fulfilment and urban fulfilment centres
- Target of 100 cities by Diwali
- FY26 revenue of Rs 35,574 crore, up 15.5% from Rs 30,805 crore in FY25
- FY26 operating profit of Rs 172 crore
- 70% of typical daily orders from Prime customers; up to 75%-80% in some areas
- Prime free-shipping threshold Rs 99 versus Rs 149 for non-Prime
- 15,000-20,000 products available for minutes delivery
- 75-80 participating retail stores across 30 cities
- Adding roughly two micro-fulfilment centres per day
Why this matters
Amazon’s recruitment of local retailers as omnichannel hubs creates partnership and acquisition opportunities around store-enabled fulfilment, while increasing competitive pressure on independent quick-commerce networks.
What to watch
- Whether Amazon reaches 100 cities by Diwali without materially extending delivery windows or shrinking assortment.
- Order frequency, average basket size and repeat rates among Prime members using Amazon Now.
- Evidence of improving contribution margin per order, especially in cities added after the initial metro rollout.
- Growth in local retail partners and the share of orders fulfilled through partner-operated omnichannel hubs.
- Competitive responses from Blinkit, Zepto, Swiggy Instamart and Flipkart Minutes, including discount intensity and new-city launches.
- Expansion of grocery, fresh and private-label assortment, which would signal a push toward higher-frequency household missions.
- Rider availability, delivery-fee changes and customer complaints around stock-outs or substitutions.
- Prioritize city expansion in dense metro-adjacent clusters where Prime penetration, seller supply and delivery capacity already overlap.
- Convert high-performing local retailers into hybrid pickup, replenishment and rapid-delivery nodes to reduce dark-store capex.
- Bundle Amazon Now benefits into Prime through exclusive assortments, delivery thresholds and subscription-linked grocery offers.
- Use first-party shopping data to localize staples, fresh food and impulse inventory at micro-fulfilment centres.
- Increase seller and brand participation through sponsored placement, rapid-delivery inventory programs and demand forecasting tools.
- Counter rivals selectively with targeted discounts and membership benefits rather than broad-based price subsidies.