Amazon India is rolling out over 100 Urban Fulfillment Centers (UFCs) under its quick commerce vertical Amazon Now, which will expand available selection by four times and add categories such as electronics, jewellery, furniture and luggage to its minutes-delivery promise, ahead of Prime Day 2026.
The move adds a second tier to Amazon Now’s existing infrastructure of over 1,000 micro-fulfillment centers (MFCs) across 100 cities. UFCs are larger-format facilities that will initially launch in Bengaluru, Chennai, Delhi-NCR, Hyderabad and Mumbai, with the company indicating a broader national rollout to follow.
“Urban fulfillment centers bring inventory closer to customers, enabling faster deliveries across a wide selection offered by our sellers,” said Abhinav Singh, Vice President – Operations, Amazon India, APAC, Middle East, Africa and Turkiye.
One UFC will service four to five micro areas simultaneously. Singh described the architecture as a two-tier network, with a UFC potentially doubling as the local MFC for a dense neighbourhood while serving as a wider-zone node for surrounding areas. The current buildout targets roughly one UFC for every four to five MFCs, a ratio Singh expects to compress as customer demand grows.
While Singh declined to share current order volumes, he said that Amazon Now is growing at 25% month-on-month, and that Prime members on the platform have tripled their shopping frequency. According to earlier reports, the platform was processing upwards of 450,000 daily orders.
On cost economics, Singh argued that larger buildings, while more expensive in absolute rental terms, lower per-order costs through transportation optimisation — particularly order batching and truck fill rates. He outlined his cost priority stack as: topology optimisation first, building automation second, hub-to-MFC transport third, and last-mile delivery last.
The UFC rollout is part of Amazon’s investment of over Rs 2,800 crore toward associate safety, health and financial wellbeing, alongside infrastructure upgrades. The company also announced an expansion of its Ashray centres — rest points for delivery associates offering air-conditioning, drinking water and first-aid — from 100 to 250 locations in 2026.
When asked whether the company will continue to be aggressive on its zero fees promise, Singh
was non-committal, saying pricing would be calibrated to “what’s right for the time”, stopping short of making the current low-fee positioning a permanent commitment.