Bengaluru: Amazon is preparing to scale down its 4-24 hour grocery delivery service, Amazon Fresh, in several major Indian cities as it sharpens focus on its quick commerce offering, AmazonNow, according to a UBS Global Research report.The transition is expected to play out across 10-15 large urban markets where AmazonNow is being expanded, effectively replacing Amazon Fresh in these locations, the report said.The move underscores Amazon’s shift towards faster fulfillment models, as competition intensifies in India’s quick commerce segment dominated by players such as Blinkit, Zepto and Swiggy Instamart.AmazonNow, currently live in six cities including Bengaluru, Mumbai and Delhi, is being positioned as the company’s primary vehicle for rapid delivery. UBS estimates the service could expand to 10 cities in the near term, covering a large share of quick commerce demand in the country.“We understand AmazonNow’s average order value (AOV) is Rs 260-300, while the mature stores (more than 6 months old) have a higher AOV of Rs 320-360, per our checks. The primary reason for low AOV vs Blinkit and Instamart is that AmazonNow is currently operating in FMCG and only recently adding other categories such as electronics, toys etc,” the research note said.The quick commerce push is being backed by a rapidly expanding dark store network. AmazonNow operates roughly 450 dark stores at present and is adding about two stores a day, with the network expected to scale up significantly over the next year, according to the report.Even as it pivots to faster deliveries in urban centres, Amazon continues to invest in its national logistics backbone. The company currently operates over 20 large warehouses for its broader ecommerce operations and is expected to increase this footprint further by mid-2026 to improve delivery timelines across India.Amazon Fresh, which remains operational in over 100 cities, will continue in markets where quick commerce is yet to be rolled out. However, in cities where AmazonNow is introduced, Fresh is likely to be phased down, reflecting a broader shift from scheduled grocery deliveries to instant fulfilment models.The report is based on channel checks and expert conversations and reflects third-party assessments of Amazon’s strategy rather than company-confirmed plans.
