Market stir due to Amazon’s move into quick commerce, shares of SWIGGY, ZOMATO and D-MART fall

Huge ups and downs are being seen in the quick commerce sector today. The main reason for this is Amazon’s entry into Quick Commerce. Amazon has announced the launch of its 15-minute “fast” delivery service. This step has further increased competition in instant commerce. Amazon’s new service is set to directly compete with Zomato’s Blinkit, Swiggy’s Instamart, Zepto, Flipkart Minutes and BigBasket.

If this pilot project started from Bengaluru is successful, Amazon can expand this service to other cities also. After this announcement by Amazon, there has been a decline in the shares of e-commerce and quick commerce companies.

Amazon’s “fast” service: delivery in 15 minutes

Amazon has named its 15-minute delivery service “Tez”. At present this service has been started as a pilot project in Bengaluru. The company plans to launch it completely by the end of this month. Earlier, in August, Amazon had planned to enter Quick Commerce, but only now has this announcement been implemented.

Increasing competition in quick commerce sector

This move by Amazon has further increased competition in the quick commerce sector. Now this sector is not limited to just Blinkit, Swiggy Instamart, Zepto, Flipkart Minutes and BigBasket. Amazon’s vast network and logistics infrastructure could give it an edge over other players.

Impact on companies:

1. Swiggy Instamart
   Swiggy Instamart shares have seen a decline due to Amazon’s entry.
   • Share Price:
     Swiggy stock fell 4.39% to ₹520.
   • Daily low:
     Today the stock’s low is ₹516.50.
   • Yesterday’s closing price:
     The stock closed at ₹543.75 yesterday.
2. Zomato (Blinkit)
   Zomato’s shares have also come under pressure due to this announcement by Amazon.
   • Share Price:
     Zomato stock is trading at ₹292, down ₹4.00 or 1.35%.
   • Daily Minimum Level:
     Today the stock’s low was recorded at ₹288.60.
   • Market Cap:
     Zomato’s market cap is around ₹281,597 crore.
   • 1 Month Performance:
     Zomato shares have fallen by about 13% in the last 1 month.
3. D-Mart (Avenue Supermarts)
   This move of Amazon has also affected the stock of D-Mart.
   • Share Price:
     D-Mart stock is trading at ₹3,739, down ₹75.90 or 1.99%.
   • Daily low:
     Today the stock’s low was ₹3,676.90.

Goldman Sachs’ disappointment on D-Mart

Goldman Sachs has reduced the target price of D-Mart shares. Given the increasing competition, the brokerage believes that:

1. D-Mart shares may fall by up to 10%.
2. Pressure on the company’s competitive advantage may increase.
3. For this reason shares of D-Mart are under pressure today.

Why is there so much buzz in Quick Commerce?

1. Changing Consumer Behaviour:
   Consumers now want everything instantly, be it groceries or everyday items.
2. Amazon’s huge network:
   Amazon already has a strong logistics and supply chain network.
3. Price-Based Competition:
   Quick commerce companies are now offering fast delivery as well as affordable prices.