Amazon India plans Rs 2,000 crore investment in 2025 to enable faster deliveries
Amazon India said Thursday that it will invest Rs 2,000 crore this year to expand and upgrade its operations infrastructure, aiming to make ecommerce deliveries 'faster and more reliable'. This has come when horizontal ecommerce marketplaces are facing stiff competition from 10-minute delivery platforms.'These latest investments reflect our commitment to continually expand and upgrade our operations across our fulfilment, sortation, and delivery network,' said Abhinav Singh, vice-president-operations, Amazon India and Australia.
Amazon recently rolled out its quick commerce offering, Now, across select pin codes in Bengaluru, and plans to expand the 10-minute delivery network to Delhi-NCR and Mumbai as well. With this, Amazon has entered a buzzy space where players such as Blinkit, Swiggy's Instamart, Zepto, BigBasket, Flipkart Minutes and Reliance Retail's JioMart are already operating.
In 2023, Amazon CEO Andy Jassy had said that the company, which had already invested $11 billion in India cumulatively at the time, plans to increase the total investment to $26 billion by 2030. The latest announcement of Amazon investing in its operations infrastructure has come at a time when the broader ecommerce sector has been witnessing a slowdown in growth. In the calendar year 2024, growth in India's e-tail market slowed down to 10-12% from over 20% in the previous years, as per a Bain & Company and Flipkart report.
In fiscal 2024, Amazon Seller Services, the Indian marketplace entity of the US ecommerce giant, posted a 14% rise in operating revenue at Rs 25,406 crore. While revenue growth outpaced the 3% increase in FY23, it lagged rates seen during the pandemic period. Revenue had grown 32% in FY22 and 49% in FY21. Its net loss narrowed in FY24 by 28% to Rs 3,469 crore.
In a December 2024 interview with ET, Amazon's senior vice president for India and emerging markets, Amit Agarwal, had said that the company wanted to make sure that the growth it's driving is towards a profitable business. 'We've been thoughtful in how we make our investments. We've made significant improvements in reducing the cost structures for our businesses so sellers can add more selections at lower prices,' he had said.The company said on Thursday that it was investing in tools that measure 'route complexity and ensure equitable distribution of delivery routes, while allowing adequate time for each delivery'. Among other steps, Amazon India said it is streamlining its delivery operations by enhancing its app to simplify the process for delivery personnel. The company is introducing improved navigation tools to help locate unstructured or hard-to-find addresses more efficiently.
Amazon also operated its in-house logistics service Amazon Transportation Services (ATS) – but this is being merged into Amazon Seller Services, as reported by ET in May.
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