Amazon push erases $15 billion from Eternal and Swiggy valuations

MUMBAI: Speed thrills customers, but it’s giving investors whiplash. India’s quick commerce race has entered a bruising new phase, with Eternal Ltd., the parent of Blinkit, and Swiggy Ltd. collectively losing more than $15 billion in market valuation as Amazon intensifies its push into the country’s booming rapid delivery market, according to a Bloomberg report.

The sharp decline comes as global e-commerce giants Amazon and Walmart-owned Flipkart ramp up investments in India’s $11 billion quick commerce sector, fuelling fears of prolonged price wars, thinner margins and an increasingly expensive battle for market share. Eternal’s shares have fallen as much as 28 per cent from their peak, while Swiggy has slumped nearly 47 per cent.

Amazon is rapidly expanding its Amazon Now service beyond its initial footprint, with plans to roll it out across more than 300 towns and cities. The company is investing heavily in logistics and fulfilment infrastructure as it looks to scale its ultra-fast delivery network across the country.

Flipkart is also stepping on the accelerator. Its Minutes service has already established 1,000 dark stores across 130 cities, with more facilities in the pipeline. The rapid expansion of these last-mile fulfilment hubs is intensifying competition in the race to deliver orders within minutes.

The arrival of deep-pocketed rivals has increased pressure on early movers such as Blinkit, Swiggy Instamart and Zepto, which helped pioneer India’s quick commerce model. While demand continues to surge, particularly beyond metropolitan markets, profitability is becoming increasingly difficult as companies prioritise customer acquisition and expansion.

Industry observers say the sector is entering a scale-first phase, where market share is taking precedence over margins. Franklin Templeton fund manager Yi Ping Liao noted that intensifying competition is weighing on near-term profitability, with uncertainty over how long the aggressive spending cycle will continue.

Competition is expected to intensify further as Reliance Retail expands its quick commerce business through JioMart, leveraging its nationwide store network. Meanwhile, Zepto is preparing for a potential $1 billion initial public offering, even as private market valuations have softened amid mounting competitive pressures.

Despite rising consumer demand, driven by convenience and expansion into smaller cities, aggressive discounting, heavy infrastructure investments and elevated operating costs continue to squeeze profitability, leaving investors questioning when India’s rapid delivery boom will translate into sustainable returns.