5 hrs ago
Amazon Now Doubles Reach Across More Than 120 Indian Cities
Amazon Now is Amazon’s service for delivering many products in just a few minutes.
It is now available in more than 120 cities in India.
Amazon says this is twice as many cities as it covered two weeks earlier.
Customers can order groceries, beauty products, clothes, appliances, and home items.
Nearly 800 fulfilment centres help prepare these orders.
Amazon said the service reached $1 billion in annualized sales during a recent three-month period.
The company wants to bring Amazon Now to more than 300 cities.
Amazon is expanding the service before its Great Indian Festival sale starts on October 8.
However, one market estimate said Flipkart had more quick-commerce stores and higher orders per store.
Amazon Now has expanded to more than 120 Indian cities, doubling its footprint in two weeks.
The service offers tens of thousands of products, including groceries, personal care, fashion, appliances, and home goods.
Orders are fulfilled through nearly 800 micro-fulfilment and urban fulfilment centres.
Amazon said Amazon Now generated $1 billion in annualized gross sales over the preceding three-month period.
Amazon plans to expand Amazon Now to more than 300 cities before the Amazon Great Indian Festival begins on October 8.
- Who
- Amazon and its Amazon India business, including executive Harsh Goyal, announced the expansion.
- What
- Amazon Now expanded its quick-commerce delivery service to more than 120 Indian cities and plans to reach more than 300.
- Where
- Across India, including Amritsar, Abohar, Jalandhar, Ambala, Mangaluru, Manipal, Visakhapatnam, Kochi, Changanassery, Bhubaneswar, and Karwar.
- When
- The expansion was announced ahead of the Amazon Great Indian Festival, which begins October 8; Amazon reported the $1 billion annualized sales figure in September.
- Why
- Amazon said it aims to make fast, reliable delivery and a broad product selection available to more customers, while expanding ahead of the festive season.
Amazon’s Expansion Case
Competitive and Profitability Concerns
Scale and growth
Amazon’s Expansion Case
Amazon said Amazon Now is the fastest-growing business unit in Amazon India’s history, with orders doubling every quarter, and that its footprint doubled in two weeks.
Competitive and Profitability Concerns
UBS channel checks reported by FE estimated that Flipkart Minutes had more than 1,000 dark stores across 120-130 cities, compared with 500-600 for Amazon Now.
Market potential
Amazon’s Expansion Case
Amazon plans to expand Amazon Now to more than 300 cities and offer tens of thousands of products through its fulfilment network.
Competitive and Profitability Concerns
UBS estimated that Amazon Now had activated fewer than one in 10 of the 60-70 million customers who regularly use Amazon’s main app.
Store performance
Amazon’s Expansion Case
Amazon highlighted its nearly 800 micro-fulfilment and urban fulfilment centres and its reported $1 billion annualized gross sales.
Competitive and Profitability Concerns
UBS estimated that Amazon Now averaged 700-850 orders per store per day, below the 1,700-1,800 orders it said a store needs to turn profitable.
Key facts
- Current reach
- More than 120 Indian cities
- Recent expansion
- Footprint doubled in two weeks
- Product range
- Tens of thousands of daily essentials
- Fulfilment network
- Close to 800 micro-fulfilment and urban fulfilment centres
- Reported sales
- $1 billion in annualized gross sales over the preceding three-month period
- Expansion target
- More than 300 cities
- Festival timing
- Amazon Great Indian Festival begins October 8
Quotes
Harsh Goyal
Vice-president, everyday essentials, Amazon India
“We are delighted to take ultra-fast deliveries with Amazon Now to India’s hinterland – from Amritsar & Abohar in the north to Kochi & Changanassery in the south – ahead of the Amazon Great Indian Festival.”
deccanchronicle.com
“Amazon Now continues to be the fastest-growing e-commerce business unit in Amazon India’s history, with orders doubling every quarter.”
financialexpress.com
Sources
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