Amazon Expands to 100 Cities: Quick Commerce War Deepens, Swiggy and Zomato Shares Decline

Amazon Expands Quick Commerce Service to 100 Cities in India, Intensifying Competition

Amazon has announced plans to expand its quick commerce service, Amazon Now, to 100 cities across India, intensifying competition in the segment. This move comes as part of Amazon India's Rs 2,800 crore investment announced last week.

Currently, Amazon Now operates in Delhi-NCR, Mumbai, and Bengaluru. To support the rollout, Amazon will scale up its specialised fulfilment infrastructure and expand its network to more than 1,000 micro-fulfilment centres.

The expansion is likely to heighten competition in the quick commerce space, which could put pressure on growth and margins of existing major players such as Eternal and Swiggy. Shares of Eternal fell 3.52 percent to an intraday low of Rs 246.01 per share on the NSE, while Swiggy declined 2.45 percent to Rs 279.2.

Read also: SpaceX Seeks Record $75 Billion IPO, Potentially Positioning Elon Musk as the World's First Trillionaire

Eternal is scheduled to report its fourth-quarter earnings later in the day. Its food delivery net order value (NOV) is estimated to grow 16–18 percent year-on-year, while NOV growth for Blinkit is expected at 95–100 percent, according to CNBCTV-18.

Amazon did not specify a timeline for the rollout, but the expansion will enable over 16,000 farmers to use Amazon's technology and operations to sell fresh produce directly to customers. Amazon Now is set to expand to cities including Pune, Hyderabad, Chennai, Kolkata, Jaipur, Lucknow, Kanpur, Chandigarh, Ahmedabad, Meerut, Mysore, Panipat, Kochi, Amritsar, Mangalore, and Visakhapatnam, among others.