Amazon.com NASDAQ:AMZN and Walmart NASDAQ:WMT-owned Flipkart are ramping up their push into India's fast-growing quick-commerce market, putting fresh pressure on incumbents Eternal and Swiggy. The intensified competition has weighed on investor sentiment, with Eternal shares falling 28% from their October peak and Swiggy declining about 47% from its September high, erasing more than $15 billion in combined market value. Investors are increasingly assessing whether the surge in competition could extend the timeline for profitability across the sector.
Amazon is accelerating its expansion after entering the ultra-fast delivery market last year, announcing plans to grow Amazon Now from more than 15 Indian cities and towns to over 300. Flipkart Minutes has also expanded rapidly, reaching 1,000 dark stores across 130 cities and reportedly targeting 1,500 stores in more than 180 cities over the coming months. At the same time, Reliance Retail is leveraging its network of more than 3,100 stores serving over 1,200 cities to strengthen JioMart's quick-commerce operations, adding another well-funded competitor to the $11 billion market.
Several analysts believe the sector could remain highly competitive for an extended period as companies prioritize market share over near-term profits. Macquarie lowered its target prices for Eternal and Swiggy, downgraded Swiggy to Underperform, and said competitive intensity could last "years, not quarters." Meanwhile, Zepto is preparing for a potential IPO after its unlisted shares declined more than 32% since February, highlighting how investor expectations have become more measured even as demand continues expanding beyond India's largest metropolitan areas.