Amazon to Expand Ultra-Fast Delivery to 300+ Cities with $13 Billion Investment
AMZN•Amazon plans to expand its Now ultra-fast delivery service from 15 to over 300 Indian cities, pledging an additional $13 billion investment in AI and cloud infrastructure. This expansion intensifies competition in India’s $11 billion rapid-commerce market and has triggered a more than $15 billion combined valuation drop for Blinkit and Swiggy.
1. India’s rapid-commerce segment heats up
Eternal Ltd and Swiggy Instamart pioneered 10-minute doorstep delivery in India’s $11 billion rapid-commerce segment but now face intensifying competition from Amazon and Flipkart, putting pressure on margins and near-term profitability.
2. Amazon’s aggressive expansion plan
Amazon Now aims to grow its footprint from just over 15 cities to more than 300 by year-end, supported by a pledged $13 billion investment in AI, cloud infrastructure and a network of last-mile dark stores.
3. Significant impact on rival valuations
The intensified competition has led to a combined valuation decline exceeding $15 billion for Blinkit (down 28% since October) and Swiggy Instamart (off about 47% since September), as investors brace for prolonged competitive intensity.
