Amazon’s rapid-delivery push wipes $15bn off India’s Eternal and Swiggy
Amazon spent years circling India’s quick-commerce market without committing to it. Investors have now decided the circling is over, and they have repriced the incumbents accordingly.
Shares in Eternal, the parent of grocery-delivery leader Blinkit, and in rival Swiggy have fallen sharply as Amazon accelerates its rapid-delivery business in the country.
Eternal has slipped about 28% from its October all-time high; Swiggy has dropped roughly 47% from its peak in September. Together the two have shed more than $15bn in market value, a selloff Bloomberg attributes directly to investor anxiety about the scale of Amazon’s entry.
The trigger is Amazon Now, the company’s “delivery in minutes” service, which Amazon plans to extend to more than 300 cities as it builds out a much larger fast-delivery network.
The unit has been one of Amazon India’s fastest-growing, with orders described as doubling every quarter since launch. A foreign giant with that trajectory,...
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