The active expansion of Amazon and Flipkart's fast delivery services in the Indian market has led to a drop in the market capitalization of Eternal and Swiggy by more than $15 billion. This is reported by foreign media.
In particular, Eternal shares fell by 28%, while Swiggy shares fell by 47%, raising investor concerns about return on assets.
Amazon and Flipkart are increasing investments in India's booming $11 billion fast-commerce segment by building a network of last-mile warehouses for distribution in small towns. At the same time, Zepto Ltd. plans to raise up to $1 billion in an IPO to acquire the assets of Blinkit and Swiggy Instamart.
Amazon plans to expand its Amazon Now service from 15 to 300 cities in India and invest heavily in infrastructure. In less than two years, Flipkart Minutes has opened 1,000 locations in 130 Indian cities and intends to add another 1,500 in 180 cities.
At the same time, Reliance Retail is expanding fast delivery operations through the JioMart network to 1.2 thousand cities as part of a competitive market.
At the moment, the market leader is Blinkit, controlled by Eternal, followed by Swiggy Instamart, Zepto, and Amazon Now. Blinkit plans to expand the network to 3,000 locations by March 2027, while Zepto and Instamart have scaled back aggressive expansion.
Flipkart is an Indian e—commerce company with headquarters in Bangalore, India. The company has launched its own DigiFlip product line (tablets, flash drives, laptop bags). In May 2018, the company's value was estimated at $20 billion.
Amazon is an American company in the fields of e-commerce, cloud computing, online advertising, digital streaming and AI. Amazon is one of the five most valuable companies in the world with 310 million active users, including 230 million in the United States. The headquarters is located in Seattle, Washington. The company's capitalization is $2.3 trillion.
Eternal Limited is an Indian technology company with headquarters in Gurugram (India). The company includes the food delivery platform Zomato, the fast trading company Blinkit, the ticketing platform District and the food delivery company Hyperpure.
Swiggy is an Indian online on-demand delivery service for food and other goods and services. The headquarters is located in Bangalore (India) with offices in 680 cities.
