Shares of delivery tech companies like Eternal, Swiggy fell up to 2% on June 24 as Amazon announced plans to build country's largest "delivery in minutes" network.

Amazon announced scaling of Amazon Now, its ultra-fast delivery within minutes, to customers in over 300 cities across the country.

Amazon CEO Andy Jassy visited an Amazon Now micro-fulfilment centre in Mumbai early Wednesday, marking the first leg of his visit to the country, where the e-commerce giant has recently announced a $35-billion investment commitment by 2030 - coming on top of $40 billion already invested - to support business expansion, AI-driven digitisation, exports and job creation.


"Andy Jassy visited an Amazon Now micro-fulfilment centre that powers the company’s ultra-fast delivery promise, with plans afoot to extend the service to more than 300 Indian cities," the company said.

Jassy is in India to meet leaders, employees and entrepreneurs. He is also expected to travel to Delhi this week.

"Great to be in India and visit an Amazon Now micro-fulfilment centre in one of the busiest areas of Mumbai," Jassy said in a post on X.

"It's our fastest-growing ecommerce business unit in India, and we're expanding to 300+ cities as part of our plan to build the country’s largest delivery-in-minutes network. And what we've learned building it here is now helping us scale it across the US and around the world." Things needed quickly, like groceries, shampoo, baby products, get picked and delivered just minutes after being ordered, Jassy said, adding that "customers are loving it..." "Prime members triple their shopping frequency once they start using it, and we've seen orders double every quarter since launch," the high-profile CEO said.

Amazon's quick commerce plans could eat into market share of Eternal's Blinkit and Swiggy's Instamart and that's why the stocks declined 1% and 2%, respectively, on June 24.

Amazon Now -- positioned as the ultra-fast delivery service of the company -- has become the fastest-growing ecommerce business unit within Amazon India’s history, with orders having doubled every quarter since launch.

Amazon Now is currently available to over 50 million customers in more than 15 metro and non-metro cities, such as Bengaluru, Delhi-NCR, Mumbai, Pune, Hyderabad, Amritsar and Kochi, among others.

Amazon plans to scale up its network of micro and urban fulfilment centres to house a wider selection of daily essentials ranging from groceries (including fruits and vegetables and frozen food), personal care, fashion and beauty products, to small appliances, home and kitchen products and more.

It is pertinent to mention that India's quick commerce market has emerged as one of the fastest-growing segments of the country's digital economy, driven by rising demand for ultra-fast deliveries and changing consumer preferences.

What began as a service, focused largely on groceries and essentials, has rapidly expanded to various categories, such as electronics, beauty products, home needs and fashion accessories, with young consumers increasingly prioritising convenience and speed.

Major players like Blinkit, IPO-bound Zepto, Swiggy Instamart, Flipkart and Amazon are jostling to grab a larger chunk of the market, as they are investing aggressively to expand networks, strengthen supply chains and add to product assortment.

In a statement, Amazon said it will ramp up its specialised fulfilment infrastructure to offer the largest selection of products to customers across India — tens of thousands of products delivered in minutes or a few hours, over one million within the same day, over four million the next day, and millions more with unlimited, free and fast Prime delivery.