Amazon Fresh Expands Presence To 170 Cities

Amid the intensifying instant delivery race in India, Amazon has expanded its grocery service Amazon Fresh to more than 170 cities and towns.

Previously operational in only 130 cities, Amazon Fresh is now extending its reach into tier- II and III markets, which include Gorakhpur, Chittoor, Ambala and Vijayawada.

The expansion coincides with Amazon Fresh’s 50% year-on-year (Y-o-Y) growth in the second half of 2024 against the second period of the previous year, the company said in a statement.

“Our expansion to more than 170 cities/towns allows Amazon Fresh to extend its reach into India’s tier II, III cities/towns and beyond, offering consumers access to high-quality groceries at competitive prices, delivered conveniently to their doorstep,” said Srikant Sree Ram, director of Amazon Fresh India.

Amazon Fresh provides a variety of grocery items such as fruits, vegetables, bread, dairy products (milk, cheese, curd, etc.) frozen goods, beauty and personal care items, baby care essentials, and pet supplies. The service comes with a two-hour delivery window, sitting right between same-day or one-day online delivery and quick commerce.

This also comes days after Amazon India has reduced referral fees to zero on more than 12 Mn (1.2 Cr) products priced below INR 300. The revised fees will come into effect from April 7.

The company claims that it is its higher-ever reduction in seller fees, aimed at boosting seller growth on its platform and supporting lakhs of small businesses across the country. 

Quick Commerce Battle Heating Up

Amazon Fresh’s expansion comes at the heart of rising competition in India’s quick commerce segment. The sector, which initially focused on delivering daily essentials to doorsteps is now evolving to influence consumer behaviour by offering a wide range of products, beyond just groceries.

In December 2024, Amazon announced its foray into the quick commerce space, while Flipkart launched ‘Flipkart Minutes’ earlier that year.

Established players like Blinkit, Instamart, and Zepto are also diversifying their offerings, going beyond the grocery category to sell everything from clothing and toys to jewellery and skin care products.

Also, in December, Bhavish Aggarwal-led Ola Consumer also launched a pilot of a 10-minute grocery delivery service in select pin codes in Bengaluru.

Amid growing popularity of 15-minute deliveries, several quick commerce startups, including Snabbit, Topmate, Swish, Zing and FirstClub, among others are now seen cropping up in the sector and moving beyond just grocery delivery.

Urban Company is the latest to jump on the quick commerce bandwagon with its 15-minute maid booking service – Insta Help.

Investors Cashing In On Quick Commerce

The quick commerce sector is gaining traction from a lot of investors. Quick commerce unicorn Zepto raised over $1 Bn in funding in 2024 alone. Earlier this month, Delhi NCR-based Swish raised $14 Mn from investors, including Accel, to scale its 10-minute food delivery offering.

Blinkit, Instamart and Zepto clocked sales worth nearly $1 Bn last year. These companies are also charting a path of profitability. Blinkit is expected to achieve breakeven by Q3 FY26, while Instamart will hit adjusted EBITDA breakeven by Q1 FY28, as per brokerage firm Bernstein.

As per a report by Deloitte, the Indian quick commerce market is poised to become a $40 Bn opportunity by 2030.