You can soon order electronics, jewelry, furniture on Amazon Now
What's the story
Amazon is ramping up its quick-commerce operations in India by launching over 100 Urban Fulfillment Centers (UFCs). The move will expand the product selection on its quick-commerce platform, Amazon Now, by four times. The new centers will offer categories like apparel, electronics, jewelry, shoes, luggage, watches and furniture for quick delivery.
Operational details
UFCs will be set up in 5 cities
The UFCs will be set up in Bengaluru, Chennai, Delhi-NCR, Hyderabad and Mumbai. They are larger facilities that will complement Amazon Now's network of over 1,000 Micro-Fulfillment Centers (MFCs) across 100 cities. The new centers aim to expand product range without compromising on delivery speed.
Financial backing
Expansion part of $300M investment in India
The expansion of UFCs is part of Amazon's previously announced over ₹2,800 crore ($300 million) investment in India. The funds are aimed at strengthening the company's operations network and improving associate safety, health and financial wellbeing. As part of this investment, Amazon has also been setting up Ashray centers, dedicated rest stops for delivery associates at high-footfall locations.
Growth trajectory
Competing with Blinkit, Zepto and Swiggy Instamart
Amazon launched its quick commerce service less than a year ago and has already expanded it to over 1,000 micro-fulfillment centers in key cities. The company also plans to expand Amazon Now to 100 cities, directly competing with established players like Blinkit, Zepto and Swiggy Instamart. The new UFCs will stock a wider assortment than the MFC network, including categories such as watches, furniture, and musical instruments along with groceries and daily essentials.
Operational synergy
UFCs to work in tandem with micro-fulfillment network
Unlike traditional dark stores, the new UFCs will work in tandem with Amazon's micro-fulfillment network. Customers will continue to receive fast-moving products from the nearest MFC while a wider range of products can be dispatched from these larger urban facilities.