Zomato and Swiggy Stocks Dip—Is Amazon to Blame?
Bengaluru, June 17, 2025 — Amazon has entered India’s fast-growing quick commerce (QC) market with the launch of its new service ‘Now’ in parts of Bengaluru, intensifying competition for food-tech giants Zomato and Swiggy.
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The quick commerce segment in India, valued at $12.6 billion today, is projected to expand nearly fourfold to $47.7 billion by 2029. Zomato’s Blinkit currently leads the market with a 41% share, followed by Zepto at 27%, and Swiggy’s Instamart at 20%.
Market reaction to Amazon’s entry has been cautious, with shares of Eternal (formerly Zomato) and Swiggy declining by up to 2% on Tuesday, reflecting investor concerns over increased competition. Analysts, however, remain optimistic about the medium-term growth potential for these players despite the margin pressures expected from heightened discount wars.
Brokerages like Jefferies point out that while Amazon offers attractive pricing, especially for Prime users, its late entry and lack of dedicated QC brand recognition pose challenges. Jefferies also highlighted that Amazon’s QC service operates within its main app, whereas separate QC apps typically perform better.
Nitin Jain, Senior Research Analyst at Bonanza, noted that Amazon’s arrival will likely spur a fresh round of discount-driven customer acquisition, compressing margins. However, he emphasized that Zomato and Swiggy’s strong local presence and ecosystem integration offer a robust defense, provided they manage costs and maintain service quality.
As the company stakes its claim, the quick commerce battle in India is set to become more intense, keeping investors of all major players on alert.
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