Amazon will invest US$3 billion to expand its India quick commerce business by 2030, two sources told Reuters. The move will amount to Amazon’s biggest bet yet on a sector where rivals have raced ahead by popularizing deliveries within minutes.

The instant deliveries sector, dubbed “quick commerce,” has become a rapidly growing force and reshaped how urban Indians shop for everything from milk and chocolates to iPhones and electronics, which were once only bought from retail stores or major e-commerce websites where deliveries took time.

Walmart’s Flipkart and Amazon, which dominate India’s e-commerce space, are late entrants in quick commerce. The US$19 billion sector is set to more than double in size to US$41 billion by 2030, according to Datum Intelligence.

Amazon plans to invest US$1 billion in the quick commerce sector by the end of 2027, and another US$2 billion by 2030, two people with direct knowledge of the plans said. The planned investment has not previously been reported.

Amazon declined to comment on the planned investment numbers. The retailer, however, said its quick commerce business has crossed US$1 billion in annualized gross sales over the past three months, “making it the fastest-growing e-commerce business in Amazon India’s history.”

A key focus of the planned investment will be adding new small neighborhood warehouses to the current Amazon Now service network, from which deliveries are shipped quickly, said both sources, who declined to be identified as the plan is confidential.

Amazon counts India as a key growth market, where it is expanding its data center, cloud and e-commerce businesses.

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