Amazon Joins Quick Commerce Race: What It Means for Zomato and Swiggy

Amazon has stepped into the growing quick commerce space with the launch of ‘Now’ in Bengaluru, intensifying competition for leading players like Zomato’s Blinkit and Swiggy’s Instamart. While new rivals pose short-term market jitters, the long-term outlook for incumbents remains cautiously optimistic, as per news reports.

Amazon’s Quick Commerce Launch Adds to Competitive Heat

Amazon has officially launched its quick commerce (QC) service, branded as 'Now', in select areas of Bengaluru. This marks another bold foray into the rapidly expanding QC segment, turning the market into a battleground of at least 7 major players.

With Rapido also entering recently, the competitive landscape is growing increasingly crowded for established names like Zomato and Swiggy.

Zomato, Swiggy Shares React to Amazon’s Entry

Zomato (now rebranded as Eternal) and Swiggy both saw their share prices dip by as much as 2% following Amazon’s QC announcement. The decline reflects concerns among market watchers about intensifying competition.

However, expectations suggest that while the entry of new players may spark short-term disruption, the core growth prospects for existing platforms are unlikely to be derailed, as per news reports.

India’s quick commerce market, currently valued at $12.6 billion, is projected to reach $47.7 billion by 2029. As of March 2025, Blinkit leads with a 41% market share, followed by Zepto at 27% and Swiggy’s Instamart with 20%.

Amazon’s Strategy: Deep Discounts and Prime Integration

As per news reports, Amazon’s ‘Now’ platform offers a broad product assortment that extends well beyond groceries. The pricing appears especially competitive for Amazon Prime members, with deeper discounts than some of the incumbent services. This move is seen as Amazon’s response to the shift of users toward specialised QC platforms.

That said, entering late in the game presents Amazon with significant logistical hurdles. Building a large-scale network of dark stores, warehouses, and a reliable last-mile delivery system will take considerable time and investment. There’s also growing belief that Amazon may need a dedicated QC app to compete effectively, alongside aggressive branding and customer acquisition campaigns.

What This Means for Zomato, Swiggy, and the QC Space

The increased competition is expected to place pressure on operating margins across the sector. Amazon’s massive scale could ignite a new wave of discount-led strategies, potentially impacting the profitability of all players in the short term.

However, customer loyalty in QC remains relatively weak, and long-term success will likely hinge on consistent delivery experience and value-added services. Zomato and Swiggy, with their existing infrastructure and local market experience, still have significant advantages—provided they control cash burn and continue enhancing service standards.

Read More: Zomato, Swiggy, or Zepto- Who Has the Highest Number of Users?

Conclusion

Amazon’s entry certainly raises the competitive bar in India’s fast-growing quick commerce sector. But while new players are shaking up the market, incumbents like Zomato and Swiggy are not without strong defences. The months ahead will test how well these companies can balance scale, efficiency, and customer retention in an increasingly crowded field.

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