Amazon Expands Into Diagnostics and Quick Commerce in India

In June 2025, Amazon India took a significant step toward deepening its role in the country’s healthcare and e-commerce ecosystems by unveiling two major initiatives: Amazon Diagnostics, an at-home medical testing service, and Amazon Now, its entry into the rapid delivery space, soft-launched in Bengaluru. These initiatives represent Amazon’s broader strategy to become a multi-service digital platform in India by entering high-growth sectors such as diagnostics and ultra-fast grocery delivery.

Amazon Diagnostics: A New Chapter in Healthtech

Launch and Features

On June 22, 2025, Amazon introduced Amazon Diagnostics as part of its growing healthcare offerings under the Amazon Medical umbrella, which already includes online drug sales and virtual doctor consultations. This newly launched service allows users to schedule home-based diagnostic tests directly via the Amazon app. Through a collaboration with Orange Health Labs, customers in six metropolitan cities—Mumbai, Delhi, Gurgaon, Noida, Bengaluru, and Hyderabad—can book from a menu of over 800 lab tests. These include everything from routine blood tests to more specialized screenings. Samples are collected from customers’ homes within an hour, and reports for common tests are typically available within six hours.

Partnership with Orange Health Labs

Amazon’s foray into diagnostics is backed by Orange Health Labs, an NABL-accredited laboratory services provider based in Bengaluru. This partnership, reinforced by a $12 million investment from Amazon’s Smbhav Venture Fund in December 2024, combines Amazon’s tech interface and reach with Orange Health’s clinical and operational infrastructure. While Orange Health oversees test quality, pricing, and logistics, Amazon handles integration within its ecosystem, ensuring seamless booking, tracking, and reporting for users.

The Market Landscape

India’s diagnostic industry, valued at ₹1.04 lakh crore ($15 billion) in 2024, is expanding rapidly at an annual growth rate between 8% and 15%. The pandemic accelerated consumer interest in preventive care and at-home medical services. Traditional players like Dr. Lal PathLabs, Metropolis, and Thyrocare dominate a significant portion of the market, but newer entrants like PharmEasy, Tata 1mg, and regional labs are gaining ground. Amazon’s scale, trusted brand, and logistics expertise offer it a strong entry point to challenge both legacy labs and emerging healthtech startups.

Strategic Importance

With Amazon Diagnostics, the company now covers all key outpatient healthcare services—consultations, medicines, and lab tests—creating a full-service digital health loop. According to Jayaramakrishnan Balasubramanian, Category Leader for Amazon Medical, diagnostics was the final link in enhancing post-consultation care. Unlike competitors focusing on heavy discounts, Amazon is emphasizing service quality, speed, and user experience, offering services at standard market rates. The integration aims to resolve common issues such as poor accessibility, inconsistent service quality, and long delays in test processing.

Competitive Reactions

Amazon’s move had immediate effects on the stock market, with key diagnostic firms like Dr. Lal PathLabs and Thyrocare seeing up to 2% drops in share prices the following day. Investors are concerned about Amazon’s potential to undercut traditional players using its robust logistics network and app-based convenience. Still, challenges remain, as Amazon will have to contend with well-established labs, digital-first startups like Redcliffe Labs, and local providers with deep regional penetration.

Amazon Now: A Foray into Instant Delivery

Trial Run in Bengaluru

Alongside its healthcare expansion, Amazon quietly piloted its Amazon Now quick commerce service in Bengaluru. The platform is designed to compete with existing players like Blinkit, Swiggy Instamart, Zepto, and BigBasket by promising delivery of groceries and daily essentials within 10 to 30 minutes. Although no full-scale launch date or investment figures were released, the move signals Amazon’s intent to tap into India’s surging demand for convenience-based shopping.

Market Trends

India’s quick commerce market is projected to reach $6 billion by the end of 2025, with a staggering 50% annual growth rate. Blinkit leads the space with about 35% market share, trailed by Swiggy Instamart and Zepto. Meanwhile, BigBasket has revealed plans to offer 10-minute deliveries by March 2026. While Amazon enters the space slightly later than its competitors, its delivery infrastructure—expanded by 10% in 2024 across PIN codes—and a planned ₹2,000 crore investment in 2025 give it an edge in scaling fast, especially in non-metro regions.

Strategic Timing

The timing of this soft launch is noteworthy. It comes just ahead of Amazon India’s ninth Prime Day (July 12–14, 2025), which will run for 72 hours for the first time. The company plans to introduce over 400 new products during the event, and Amazon Now could serve as a catalyst to drive Prime memberships, especially in tier-2 and tier-3 cities where fast delivery options are gaining popularity.

Facing the Competition

Although Amazon’s logistics network is among the most robust in India, entering a space already dominated by players with strong dark store networks and optimized operations presents a steep challenge. Blinkit and Zepto, in particular, have perfected hyperlocal delivery models. To compete effectively, Amazon will need to distinguish itself either through superior tech integration, Prime-linked benefits, or broader product variety. Social media commentary, particularly on X, reflects both enthusiasm and skepticism about Amazon’s ability to disrupt the already crowded field.

Broader Impacts and Industry Significance

1. Reinventing Urban Healthcare

Amazon Diagnostics offers an efficient, digital-first alternative in a sector where delays and limited access are common. By providing comprehensive at-home testing options, Amazon could reshape how urban consumers approach preventive health. However, extending services to smaller towns and making them affordable for lower-income users will be vital to achieving broader health equity.

2. E-Commerce Evolution

Amazon Now reflects the growing convergence of e-commerce with ultra-fast logistics. With existing one-day delivery already available in 23 cities for medical products, Amazon is well-positioned to transition into quick commerce. Still, the low-margin nature of the sector will test Amazon’s ability to operate sustainably while offering competitive pricing and speed.

3. Competitive Disruption

Both initiatives are likely to force incumbents to reevaluate their strategies. In diagnostics, traditional labs may need to enhance digital services and reduce turnaround times. In quick commerce, Amazon’s financial muscle and technological edge could pressure smaller or less agile firms to adapt or consolidate.

4. Enhanced Consumer Experience

For customers, the benefits are clear: easy access to over 800 diagnostic tests, quick results, and groceries or essentials delivered in under 30 minutes. Amazon’s reputation for reliability and seamless user experience could raise expectations across sectors. However, pricing at market levels might not appeal to value-driven consumers unless Amazon introduces Prime-linked offers or subscription tiers.

5. Economic and Sectoral Growth

These ventures will likely generate new employment in logistics, healthcare support, and technology, while contributing to the expansion of India’s digital health and retail ecosystems. Amazon’s increased investment in labs and logistics also underscores its long-term commitment to India, as emphasized by Country Manager Samir Kumar at the 2025 ETRetail Summit.

Potential Roadblocks

• Regulatory Compliance: The diagnostics segment requires stringent adherence to medical protocols and data privacy laws. Although Amazon’s partner is NABL-certified, scaling nationwide will demand constant regulatory vigilance.

• Fierce Competition: In both segments, Amazon is challenging established players with proven business models. Success will depend on its ability to innovate and execute quickly while keeping costs under control.

• Operational Complexity: Quick commerce needs dense infrastructure, including dark stores and real-time inventory systems. Similarly, diagnostic services must ensure sample quality and timely reporting across diverse regions.

• Rural Penetration: Expanding into non-metro markets brings logistical and cultural challenges. Ensuring adoption among price-sensitive and tech-averse users will require localized strategies.

Conclusion

Amazon’s dual launch in diagnostics and quick commerce reflects a calculated expansion of its Indian portfolio, reinforcing its ambition to be a central player in both digital healthcare and next-generation retail. Amazon Diagnostics, with its partnership-driven model, offers fast, reliable lab testing integrated into the broader Amazon Medical ecosystem. Meanwhile, Amazon Now introduces ultra-fast delivery into Amazon’s value proposition, starting with a strategic test run in Bengaluru. These moves may well reshape consumer expectations, challenge market leaders, and create new benchmarks in quality and convenience. Yet, long-term success will rely on Amazon’s ability to navigate regulatory environments, scale sustainably, and continuously innovate.