Amazon and Flipkart’s aggressive scale-up in India’s quick commerce space has triggered a combined $15 billion selloff in Swiggy and Eternal, as investors grow wary of intensifying competition and mounting margin pressure, according to a Bloomberg report.
The selloff comes as Amazon and Walmart-backed Flipkart deepen their push into the $11 billion rapid delivery market, raising the stakes for early movers. Eternal, the parent of Blinkit, has slipped as much as 28% from its peak, while Swiggy has tumbled nearly 47%, as concerns mount over thinning margins and a prolonged battle for market share.
Amazon is scaling its Amazon Now service well beyond its current base, with plans to expand to over 300 towns and cities, backed by heavy infrastructure investment. Flipkart Minutes is moving just as fast, having already set up 1,000 dark stores across 130 cities, with more in the pipeline to power its 10-minute delivery promise.
This aggressive expansion is squeezing pioneers like Blinkit, Swiggy Instamart and Zepto, who built India’s quick commerce category from the ground up. Even as demand grows beyond metro cities, profitability remains elusive. Franklin Templeton’s Yi Ping Liao flagged that heightened competition is weighing on near-term margins, with no clear timeline for relief.
Adding to the pressure, Reliance Retail is leveraging its expansive store network to push JioMart deeper into quick commerce, while Zepto eyes a potential $1 billion IPO despite softening private market valuations. As discounting wars continue and operating costs stay elevated, India’s quick commerce leaders face a longer, costlier road to profitability.
