Amazon expands QCom to Mumbai: Is it a threat to Eternal, Swiggy?

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Amazon India has expanded its 10-minute delivery service ‘Now’ to Mumbai, after earlier launches in Bengaluru and Delhi. The quick commerce (QCom) offering currently operates through over 100 dark stores, a small footprint compared with sector leaders — Blinkit (1,544 stores) and Swiggy Instamart (1,062 stores). While Amazon has the capital and ambition to scale up, analysts believe incumbents such as Swiggy and Eternal remain better placed.

 

Emkay Global Financial has retained a ‘Buy’ on Eternal stock for a target of ₹330 per share. 

 

At 10:01 AM, Eternal shares were trading 0.61 per cent lower at ₹326.05 per share on BSE, and Swiggy stock was trading 0.7 per cent higher at ₹426.5 per share. In comparison, BSE Sensex was trading 0.23 per cent higher at 81,738.27. 

Brokerages back incumbents

Building an entirely new supply chain for QCom is seen as a significant challenge for Amazon. Early movers already enjoy strong customer recall, robust supply chains, and high engagement. Eternal (Blinkit) and Swiggy (Instamart) have established themselves as go-to platforms, ensuring consumer stickiness, Emkay noted.

Traction but limited disruption

Amazon has reported strong traction for ‘Now’, with 25 per cent M-o-M order growth in Bengaluru and Delhi, and a surge in Prime member shopping frequency, according to JM Financial.

 

However, analysts believe much of this early growth for late entrants like Amazon and Flipkart’s Minutes stems from cannibalisation of their own traditional e-commerce orders, rather than genuine market share gains.

 

“Late entrants may find it difficult to make immediate market inroads, given the strong supply chain networks built by early adopters across 100+ cities, and their reliance on the same pool of delivery partners and contractual workers,” JM Financial added.

Investment and consolidation ahead

Analysts highlight that for Amazon to make meaningful inroads, it will need to launch a dedicated QCom app, expand dark stores, build motherhubs, and invest heavily in branding, customer acquisition, and retention. This process will require significant time and capital, limiting any near-term competitive threat to incumbents.

 

Overall, while new entrants bring more competition, driving market expansion, excessive rivalry could weigh on profitability. In the long run, analysts expect consumer stickiness to support incumbents, with a consolidation phase likely once industry growth slows, leading to weaker players exiting and profitability improving.

QC market outlook

Currently, QCom penetration in India’s $1 trillion retail market (CY24) stands at just 0.9 per cent (Q1FY26). Over the next five years, penetration is expected to rise to only 2.5 per cent, but the overall market (in GOV terms) can expand to $48 billion, growing at a 44 per cent CAGR.

 

This growth trajectory should ensure sustained, exponential GOV expansion for early adopters like Blinkit, Instamart (Eternal), and Zepto, despite the entry of large e-commerce players, JM Financial added.