Amazon’s Quick-Commerce Venture in India Gains Traction
Amazon’s operations in India are buzzing with excitement as its quick-commerce service, Amazon Now, has hit a remarkable $1 billion in annual gross sales over the past three months. This achievement marks the fastest growth for any e-commerce segment in the company’s history in India.
Recent data from Amazon India reveals that the number of orders placed on the platform has doubled every quarter since its inception. Currently, average daily orders are around 700,000, giving Amazon Now about 10% of the quick-commerce market by orders and roughly 14% by sales value. In less than ten weeks, the service has expanded significantly, now reaching over 60 cities and towns through a network of more than 750 fulfillment centers. By Diwali, Amazon aims to expand to 100 cities and intends to establish 1,000 dark stores by the end of the year, with plans to cover more than 300 cities in total.
This push in India aligns with Amazon’s strong performance globally. The company’s net sales for the second quarter of 2026 were reported at $200.6 billion, a 20% increase compared to the same time last year. The International segment, which includes India, showed remarkable growth with net sales of $42.2 billion, up 15% year-on-year, while operating income for this segment climbed to $1.7 billion from $1.5 billion a year earlier. Additionally, Amazon is considering a Hindi version of its generative-AI assistant, Alexa+, for Indian users, demonstrating its commitment to investing in the Indian market, although a launch date is still pending.
However, there are challenges ahead. Operating numerous dark stores and managing instant inventory requires significant investment, and Amazon entered the quick-commerce space after competitors like Blinkit, Instamart, and Zepto had already gained a foothold. The sustainability of this growth will ultimately depend on order frequency and average order value as Amazon expands from major cities to smaller towns, where profits may be tighter and delivery logistics more complicated.
Facing Competition from Walmart and DoorDash
Amazon’s venture into the quick-commerce market in India draws comparisons with its competitors in the U.S., namely Walmart and DoorDash. Walmart, via its majority ownership of Flipkart, has launched Flipkart Minutes, which directly competes with Amazon Now in the Indian market. Walmart’s extensive supply chain provides it with advantages similar to Amazon’s, resulting in a fierce rivalry between these two retail giants on international turf. Meanwhile, DoorDash, traditionally associated with food delivery in the U.S., is branching out into grocery and instant commerce globally, testing its logistics capabilities in new sectors.
Both Walmart and DoorDash, unlike Amazon, face a different set of challenges related to regulations and capital exposure, being publicly traded companies that report their performance each quarter.
Stock Performance and Future Outlook
Amazon’s shares have seen a 7.6% increase in value so far this year, while the broader Zacks Internet – Commerce industry has grown by 1.9%, and the retail-wholesale sector has dipped by 0.9%. Currently, Amazon stock appears to be slightly overvalued, with a forward price-to-earnings ratio of 21.99, which is higher than the industry average of 20.65. The company currently holds a Zacks Value Score of D.
The anticipated earnings for Amazon in 2026 are projected at $13.06 per share, reflecting a significant 82.15% increase from the previous year. The company is currently rated as a Zacks Rank #3 (Hold), which suggests a cautious outlook for investors as they evaluate the future performance of this tech titan.
