Amazon's qcom blitz: 2 new dark stores a day, 300 by year-end across 3 cities

The e-commerce major will set up 300 dark stores in 3 metros by year-end, even as rivals like Blinkit and Zepto raise money and expand nationwide

Amazon Now, the quick commerce (qcom) arm of e-commerce giant Amazon, on Monday said it is accelerating its instant delivery service, targeting opening two new micro fulfillment centers every day.

 

Overall, a total of 300 new stores will be set up in Bengaluru, Delhi and Mumbai, the cities where the instant grocery delivery service is already available.

 

Why is Amazon Now accelerating its expansion?

 

Speaking on the expansion plans, Samir Kumar, country manager at Amazon India, said, “We are excited to see customer response to Amazon Now and have accelerated our expansion plans. We will end the year at well over 300 micro-fulfilment centres and are not slowing down — opening two such centres a day across Bengaluru, Delhi and Mumbai.” 

The service, which was launched in Bengaluru earlier this year, was expanded to Delhi and Mumbai ahead of the festive season with 100 micro fulfillment centers. The company said it has since added many more to meet growing customer demand for ultra-fast deliveries. In the case of Amazon’s Prime members, the shopping frequency rose three times once customers started using Amazon Now.

 

How does Amazon plan to grow the service beyond key metros?

 

The company noted it will also expand beyond the current three cities in the coming months. “Amazon’s ultra-fast delivery service combines the wide selection of daily essentials from sellers with the company’s high standards of safety, transparency and reliability. Amazon Now will continue expanding to more neighbourhoods in Bengaluru, Delhi and Mumbai, with plans to launch in other cities in the coming months,” it added.

 

How are rivals fuelling the quick commerce race?

 

Qcom companies, including both new and legacy firms, are aggressively expanding operations, setting up dark stores and raising and infusing money.

 

Amazon, though deep-pocketed and aggressive in opening these centers, still trails existing players by a wide margin. For instance, Blinkit has set a target of establishing 3,000 dark stores by March 2027, for which it recently received an investment of Rs 600 crore from its parent company, Eternal.

 

Zepto recently raised $450 million in funding at a $7-billion valuation, just a year after it secured $350 million. In November this year, Swiggy’s board gave the nod to raise Rs 10,000 crore via public or private offers, including qualified institutional placement. And Innovative Retail, the consumer-facing arm of BigBasket, secured Rs 200 crore in debt funding from DBS Bank.