Amazon and Flipkart are aggressively expanding rapid-delivery services across India, triggering a $15 billion（約2.4兆円） selloff in startups Blinkit and Swiggy. The two giants are building networks of dark stores to reach smaller cities, while investor confidence has weakened over fears that competitive intensity will keep near-term profits depressed. Zepto is preparing an IPO to fund its own market challenge.
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Blinkit owner Eternal and Swiggy have shed a combined $15 billion（約2.4兆円） in market value as Amazon and Flipkart ramp up their rapid-commerce operations in India. Eternal has fallen 28% from its October peak, while Swiggy has plunged about 47% from its September high. Amazon is expanding its Amazon Now service to more than 300 Indian cities and towns from more than 15, and Flipkart Minutes is scaling to 1,500 dark stores (last-mile delivery warehouses) across 180-plus cities.
Why it matters
Investors are spooked by the intensity of competition in India's $11 billion（約1.8兆円） rapid-commerce segment, where deep-pocketed global players are undercutting established startups. A Franklin Templeton fund manager noted that near-term profitability is depressed by competitive pressure, with lingering risk around how long this intensity will last. For existing incumbents like Blinkit and Swiggy Instamart, the pressure from Amazon's $13 billion（約2.1兆円） additional investment in India's AI and cloud infrastructure signals a prolonged competitive battle.
What to watch
Blinkit currently leads with 2,243 dark stores, while Swiggy trails at 1,143. Zepto plans to raise as much as $1 billion（約1600億円） via an initial public offering to fund its competitive push against market leader Blinkit and Swiggy Instamart.
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