UBS report signals strategic shift towards ultra-fast delivery model via Amazon Now
Amazon India is likely to scale down and shut its Amazon Fresh service in several top cities as it sharpens focus on quick commerce, according to a report by UBS Global Research.
The report indicates that Amazon Fresh—currently operational in around 120 cities—may cease operations in 10 to 15 major urban centres where the company plans to expand its rapid delivery platform, Amazon Now.
Amazon Fresh, which delivers groceries and essentials within 4 to 24 hours, is being deprioritised as consumer demand shifts towards faster fulfilment models. The company launched Amazon Now in 2025 and has since expanded the service to key markets including Delhi, Bengaluru and Mumbai.
The quick commerce platform is currently operational in six cities and is expected to expand to 10–15 cities, catering to nearly 80 per cent of demand in the segment, the report noted.
Amazon’s pivot comes amid intensifying competition in India’s fast-growing quick commerce space, where players such as Blinkit, Zepto, Swiggy Instamart and Flipkart Minutes are aggressively scaling up dark store networks and delivery speeds.
The company is reportedly ramping up infrastructure, with plans to significantly increase its network of dark stores to support faster deliveries and higher order volumes. Industry estimates suggest Amazon Now is already clocking hundreds of thousands of daily orders across its network.
While Amazon has not officially confirmed the move, the shift underscores a broader recalibration of its grocery strategy in India, aligning with evolving consumer expectations around speed, convenience and on-demand delivery.
