Amazon India to Close Fresh Service in Major Cities to Boost Quick Commerce
Amazon India to shut down Fresh in top cities amid quick commerce push: UBS report
The Economic TimesImage: The Economic Times
Amazon India plans to shut down its Fresh service in 10 to 15 major cities as it shifts focus to its quick commerce platform, Amazon Now. This strategic move aims to enhance service efficiency, catering to 80% of current demand in these urban areas.
- 01Amazon Fresh will cease operations in 10 to 15 major cities.
- 02The company is shifting focus to its quick commerce service, Amazon Now.
- 03Amazon Now currently operates in six cities and is expanding rapidly.
- 04Amazon is expected to have 500 dark stores to support its quick commerce operations.
- 05The move is part of a broader trend among e-commerce companies to enhance quick delivery services.
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Amazon India is set to discontinue its Fresh service in 10 to 15 major cities as part of a strategic pivot towards its quick commerce platform, Amazon Now. According to a report by UBS Global Research, this decision comes as Amazon seeks to streamline operations and focus on meeting the growing demand for rapid delivery services. Currently, Amazon Fresh operates in 120 cities, but will be phased out in key urban areas where Amazon Now is expanding. Launched in June 2025 in Bengaluru, Amazon Now has since entered cities like Delhi and Mumbai, and is projected to expand to the top 10-15 cities that account for 80% of the quick commerce demand. The service is currently fulfilling 300,000-350,000 orders per day and competes with other quick commerce platforms such as Instamart, Blinkit, and Flipkart Minutes, which is also rapidly increasing its dark store network. As e-commerce companies adapt to the rising demand for quick delivery, Amazon's shift signals a significant change in its operational strategy.
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This closure may affect consumers relying on Amazon Fresh for grocery deliveries, pushing them to adapt to the new Amazon Now service for quick deliveries.
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