Should Eternal, Swiggy investors worry as Amazon enters quick commerce?

Amazon’s push into quick commerce in India has added a new dimension to one of the fastest-growing consumer internet markets. But for investors in incumbents such as Eternal, which owns Blinkit, and its rival Swiggy, the question is whether this global giant’s entry should intensify competition.

Emkay, JM Financial, Nomura, and Morgan Stanley suggest not yet.

Amazon Now, the company’s 10-minute delivery service, has expanded to Mumbai after pilot runs in Bengaluru (December 2024) and Delhi (July 2025). The service is backed by around 100 dark stores across these three cities. Early numbers are encouraging: management says orders have grown 25% month-on-month, and Prime members triple their shopping frequency once they start using the service. Now sits inside the main Amazon app alongside services such as Pay, Fresh, and Bazaar, signalling that leadership is ready to scale beyond a limited pilot.


Still, analysts at Emkay point out that Blinkit and Swiggy hold a commanding lead. Blinkit alone has 1,544 dark stores, while Swiggy has 1,062. Building a new supply chain from scratch will be challenging for Amazon, especially in a business that relies heavily on execution across sourcing, logistics, inventory, and last-mile delivery.

Emkay argues that Amazon’s entry is part of the “land grab” phase, where adjacent players pile in, driving market expansion and innovation. While this inevitably weighs on profitability, consumer stickiness is expected to help Blinkit, Swiggy, and Zepto hold on to their core base. Once growth slows, consolidation should follow, with sub-scale players exiting. Emkay has retained a Buy call on Eternal, with a target price of Rs 330.

JM Financial takes a similar line, noting that while Amazon Now has seen strong traction in early markets, it remains far behind early movers. Flipkart’s quick commerce arm, Minutes, launched in August 2024, also posted healthy growth but faces the same challenge: cannibalisation of existing e-commerce orders and the need to build a dedicated app and logistics network. JM Financial says quick commerce is structurally “execution-heavy”, and late entrants will struggle to make meaningful inroads given incumbents’ first-mover advantage in real estate, logistics technology, and customer stickiness.

Nomura recently lifted its target price on Eternal to Rs 370, citing Blinkit’s strong growth trajectory. The brokerage expects Blinkit to achieve adjusted EBITDA breakeven by the fourth quarter of FY26, supported by an inventory-led model and store expansion. The company has added more than 1,000 stores in the past five quarters and is on track to reach 2,000 by December 2025.

Morgan Stanley is even more bullish, setting a Rs 390 target on Eternal. It sees Blinkit leading the disruption of modern trade and e-commerce, with scale driving both monetisation and margins.

On Monday, Zomato shares rose 1% to Rs 325 on the BSE. Meanwhile, Swiggy shares gained 2% to Rs 427 on the BSE. Zomato shares have surged 60% in the last six months, while the Swiggy stock is up 19% over the same period.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)