Shares of Indian quick commerce leaders Eternal and Swiggy suffered a combined market value loss of about $15 billion after Amazon unveiled an aggressive expansion of its ultra-fast delivery business, heightening investor concerns over intensifying competition in India’s rapidly growing quick commerce market. According to Reuters and Bloomberg, Amazon plans to expand its Amazon Now service from just over 15 cities to more than 300 cities, positioning itself as a formidable challenger to established players such as Eternal’s Blinkit, Swiggy’s Instamart, and Flipkart Minutes.
Amazon said it will significantly increase its specialized fulfilment infrastructure to offer the country’s largest “delivery in minutes” network, enabling customers to receive tens of thousands of products within minutes or hours. During his visit to India, Amazon Chief Executive Andy Jassy described the quick commerce business as one of the company’s fastest-growing initiatives, noting that the service is now doubling in scale every quarter after years of experimentation. The expansion forms part of Amazon’s broader strategy to deepen its presence in one of the world’s fastest-growing e-commerce markets.
The announcement triggered a sharp sell-off in shares of Eternal and Swiggy as investors anticipated increased competition, higher customer acquisition costs, and sustained pressure on profit margins. Economic Times noted that while Blinkit and Instamart currently maintain larger networks of neighbourhood fulfilment centres and stronger order volumes, Amazon’s financial strength, logistics capabilities, and extensive customer base could reshape competitive dynamics over the coming years. Industry analysts have previously warned that the entry of well-capitalized global players such as Amazon and Flipkart is likely to intensify pricing competition across the sector.
For India’s digital commerce industry, Amazon’s expansion marks the beginning of a new phase in the battle for dominance in quick commerce, a market estimated at $11 billion and growing rapidly as consumers increasingly demand deliveries within minutes. Analysts believe the heightened competition will accelerate investment in logistics, technology, and customer experience while placing greater emphasis on operational efficiency and profitability. As global and domestic giants race to capture market share, India’s quick commerce sector is expected to remain one of the world’s most closely watched e-commerce battlegrounds.
