In a bold move to sharpen its competitive edge in India’s fast-evolving e-commerce landscape, Amazon India has announced a fresh ₹2,000 crore ($233 million) investment this year to upgrade and expand its logistics and operations infrastructure.
This represents one of Amazon’s largest annual capital outlays in India to date and comes amid rising competition from ultra-fast delivery startups and a broader deceleration in the country’s e-tail sector.
Focus on Speed, Scale, and Service
The investment will primarily go toward strengthening Amazon’s fulfilment centres, sortation hubs, and last-mile delivery infrastructure, particularly in high-density urban areas. The goal: reduce delivery times, enhance service reliability, and improve customer satisfaction in one of the world’s most critical growth markets for the global e-commerce giant.
“For over a decade now in India, we have been focused on building the best-in-class logistics infrastructure—designed to deliver with safety, speed, scale, and reliability for our customers across the country,” said Abhinav Singh, Vice President of Operations for Amazon India and Australia. “These latest investments reflect our commitment to continually expand and upgrade our operations.”
Singh emphasized the company’s intent to support both its customer base and its logistics workforce: “By strengthening our infrastructure capabilities, enhancing processing capacity, and implementing state-of-the-art technology, we’re positioning Amazon to better serve customers throughout India while supporting our employees, associates, and partners who are the heart of it all.”
A Strategic Response to Competition
The investment follows Amazon’s pilot launch of its “Now” 10-minute delivery service in select Bengaluru pin codes. The company plans to roll out the service in Delhi-NCR and Mumbai later this year, entering a space dominated by Blinkit, Zepto, Swiggy Instamart, Flipkart Minutes, BigBasket, and JioMart.
The rapid delivery market has become a key battleground as consumer expectations shift toward instant gratification and time-sensitive fulfillment.
Mixed Market Signals, but Steady Growth
Amazon’s renewed focus on logistics comes during a slowdown in India’s overall e-commerce growth. According to a Bain & Company–Flipkart report, India’s e-tail sector grew by only 10–12% in calendar year 2024, a sharp drop from over 20% in earlier years.
Still, Amazon India managed to outpace the market with a 14% rise in operating revenue in FY24, reaching ₹25,406 crore. Net losses also narrowed by 28% to ₹3,469 crore, signaling operational improvements even amid a tempered growth environment.
Tech and Workforce Investments
Beyond logistics, Amazon is investing in technology upgrades and employee-centric programs. This includes enhancements to its delivery personnel app, adding features like earnings transparency, improved navigation tools, and route optimization for complex deliveries.
The company is also expanding its employee welfare initiatives, including:
- “Samridhi” for financial support,
- “Ashray” to provide rest points for delivery partners,
- “Sushruta” for healthcare assistance to truck drivers.
In addition, a nationwide health check-up campaign is currently underway, expected to benefit 80,000 delivery associates by year-end. The company is also promoting helmet safety to improve rider protection.
Conclusion
With its ₹2,000 crore bet, Amazon India is not only responding to shifting consumer habits and increased competition but also reinforcing its long-term commitment to the Indian market. The dual emphasis on infrastructure and people places the company on firm ground to navigate the next phase of India’s e-commerce evolution.
