 "Why are food delivery platforms Swiggy, Zomato shares falling in trade?")
Swiggy and Zomato shares fell up to 4.4 per cent on Wednesday, December 11, 2024, after reports suggested that Amazon India is set to introduce a 15-minute delivery service in Bengaluru later this month. Around 9:48 AM, Swiggy shares were down 4.25 per cent at Rs 520.45 per share and Zomato shares were down 1.23 per cent at Rs 292.25 per share. In comparison, BSE Sensex was down 0.04 per cent at 81,480.50.
As per reports, Amazon took the step after it noticed that urban customers increasingly demand quicker delivery of everyday essentials.
This initiative marks Amazon's first venture into offering a 15-minute delivery service globally. Although the name of the service remains undisclosed, this service will initially be rolled out in Bengaluru and will include 1,000-2,000 products, with plans to expand to other cities in the future, as per reports.
The US-based company has become the sixth significant player to enter India's fast-growing quick commerce sector, which is generating over $6 billion in annual revenue. The market is primarily active in around 24 cities, with leading players like Zomato's BlinkIt, Swiggy, and Nexus-supported Zepto holding the largest shares.
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Meanwhile, Swiggy's 30-day anchor lock-in period ended on December 10, 2024. Amazon India is the Indian subsidiary of Amazon.com, one of the world’s largest e-commerce companies. Launched in June 2013, Amazon India has grown to become a leading online marketplace, offering a wide range of products and services to Indian consumers. Headquartered in Bengaluru, it operates under the domain Amazon.in and serves millions of customers across the country.
It offers an extensive selection of products, including electronics, fashion, home appliances, books, groceries, and more, catering to diverse customer needs. It has diversified segments which includes pantry, wallet, web services and more.
The company competes with major players like Flipkart, Myntra, and Reliance JioMart in the Indian e-commerce market. It has invested heavily in logistics, warehousing, and delivery infrastructure to ensure faster and reliable services, including same-day and next-day delivery in many areas. The company has contributed significantly to the Digital India initiative, encouraging digital transactions and online shopping adoption.
Amazon entered the Indian market in June 2013, starting as an online book marketplace. Over the years, it expanded to include millions of products across various categories.
By leveraging its global expertise, Amazon India rapidly became one of the largest e-commerce platforms in the country.