Archive · 17 Jun 2025
Amazon Enters Quick Commerce, Impacting Zomato and Swiggy
Amazon is entering the quick commerce market, competing with existing players like Zomato's Blinkit and Swiggy's Instamart.
Amazon's new service, 'Now', caused a dip in Zomato and Swiggy's stock prices, as analysts see increased competition.
The quick commerce market is growing rapidly, with Blinkit currently holding the largest market share.
While Amazon's entry poses challenges, Zomato and Swiggy's local expertise could help them.
Experts anticipate margin pressure, but also suggest that losses for Blinkit and Instamart might have peaked.
Amazon launched its 'Now' quick commerce service in Bengaluru.
Zomato and Swiggy shares declined due to the increased competition.
India's quick commerce market is projected to reach $47.7 billion by 2029.
Blinkit leads the market with 41% share, followed by Zepto and Swiggy's Instamart.
Analysts predict potential margin pressure due to Amazon's entry, but believe Zomato and Swiggy have advantages.
- Who
- Amazon, Zomato, Swiggy, and other quick commerce platforms.
- What
- Amazon launched a quick commerce service called 'Now'.
- When
- Recently, with services available in Bengaluru.
- Where
- Bengaluru.
- Why
- To gain a share of the growing quick commerce market.
Investor Concerns
Company Performance
Market Competition
Investor Concerns
Investors are concerned about the potential for increased competition from Amazon, which could compress margins for existing players such as Zomato and Swiggy.
Company Performance
Analysts believe that while Amazon's entry will increase competition, Zomato and Swiggy may be better positioned to defend their market share due to their brand recall and customer base.
Financial Performance
Investor Concerns
The launch of Amazon's quick commerce service could lower stock prices for Zomato and Swiggy.
Company Performance
JM Financial believes that the EBITDA losses may have peaked for Blinkit and Instamart in 4QFY25 and assigns a 'BUY' rating to both Zomato and Swiggy.
- Company
- Amazon
- Service
- Now
- Market
- Quick Commerce (QC)
- Market Size (2029)
- $47.7 billion (projected)
- Market Share Leader
- Blinkit (41%)
- Competitors
- Zomato, Swiggy, Zepto
