Amazon and Flipkart Elevate Competition in Quick Commerce Sector
MUMBAI: Amazon and Walmart’s Flipkart are intensifying their competition in India’s quick commerce sector. Both companies are investing heavily in dark store expansions, offering aggressive discounts and cashbacks to capture market share. This move comes as established players like Eternal, which owns Blinkit, and Swiggy face pressure despite having substantial cash reserves.
Eternal’s stock has dropped nearly 30% from its 52-week high, while Swiggy’s shares have fallen almost 50% during the same period, resulting in a combined market value loss exceeding $15 billion, according to Bloomberg estimates. Analysts at Emkay describe the sector as being in a “land-grab phase,” with Amazon and Flipkart’s entry likely to increase competition and pressure on companies focused on unit economics.
Amazon’s CEO Andy Jassy recently visited India, marking his first trip since taking over in 2021. He announced plans to expand Amazon’s quick commerce service, Now, to over 300 cities from just 15. Following this announcement, shares of Eternal and Swiggy fell by up to 2% in intra-day trading. Under Jassy’s leadership, Amazon aims to establish the largest delivery network, moving quickly to gain ground after a late entry into the market.
Flipkart Minutes has expanded to over 130 cities within two years, facing competition from Blinkit, Swiggy, and Zepto. Walmart’s new chief, John Furner, visited India in May to assess operations as both Flipkart and PhonePe prepare for public listings. Both Amazon Now and Flipkart Minutes are leveraging their extensive customer bases to drive growth in quick delivery services.
Amazon is particularly focused on regaining Prime members lost to competitors, targeting areas with high Prime member density. Analysts from The Knowledge Company note that the current level of discounting by Amazon and Flipkart in quick commerce has not yet matched that of their marketplace businesses. Zepto currently leads in discount share among competitors.
According to Bernstein, Blinkit holds a 46% market share in order volumes, followed by Zepto at 35% and Instamart at 19%. Zepto is preparing for a $1 billion IPO, despite reporting losses of Rs 5,905 crore as of FY26. Bernstein analysts predict that the competitive intensity in the sector will persist through at least 2027, with industry profitability remaining under pressure, making access to capital essential for survival. Blinkit now faces a critical decision: to either adopt margin-diluting discounts to maintain market share or to uphold its premium positioning.
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