Swiggy and Zomato shares saw a drop of up to 4.4% on Wednesday, December 11, 2024, after reports emerged that Amazon India plans to launch a 15-minute delivery service in Bengaluru later this month. At 9:48 AM, Swiggy share price were down by 4.25%, trading at ₹520.45 per share, while Zomato shares fell by 1.23%, priced at ₹292.25 per share. In contrast, the BSE Sensex was down by just 0.04% at 81,480.50.
Swiggy’s stock had a strong market debut last month, listing on the NSE at ₹420 per share, a 7.69% premium to its issue price of ₹390. Since then, the shares have performed well, rising over 35% above their issue price. Despite today’s decline, Swiggy’s stock remains more than 30% higher than its issue price. As of 10:15 AM, Swiggy shares were trading 4.40% lower at ₹519.65 per share on the BSE.
Zomato share price is trading at ₹291.55 as of 10:32 AM on December 11, 2024, down by 1.45% or ₹4.30 today. The stock opened at ₹290.00, reached a high of ₹294.10, and recorded a low of ₹288.60 during the session. The stock’s 52-week high is ₹304.70, while its 52-week low stands at ₹114.15. Over the past month, Zomato shares have gained 12.73%, rising by ₹32.93. In the last 6 months, the stock has surged by 58.43%, adding ₹107.53. Year-to-date, Zomato has delivered an impressive return of 134.18%, with a gain of ₹167.05.
According to reports, Amazon decided to introduce this service in response to growing demand for faster delivery of daily essentials in urban areas. This will be Amazon’s first-ever 15-minute delivery service globally. Although the name of the service is not yet revealed, it will initially be available in Bengaluru and include 1,000 to 2,000 products. There are plans to expand the service to other cities in the future.
With this move, Amazon has become the 6th major player in India’s fast-growing, quick commerce sector, which generates over $6 billion in annual revenue. This market is active in around 24 cities, with big players like Zomato’s BlinkIt, Swiggy, and Zepto (backed by Nexus) holding the largest market shares.
Amazon India, the Indian arm of the global e-commerce giant Amazon, was launched in June 2013. Based in Bengaluru, Amazon.in has grown into one of the country’s leading online marketplaces. It offers a vast range of products, including electronics, fashion, home appliances, books, and groceries. The company competes with major players like Flipkart, Myntra, and Reliance JioMart. Amazon India has also heavily invested in logistics, warehousing, and delivery infrastructure to provide faster services, including same-day and next-day delivery in several regions.
Since its launch, Amazon India has significantly impacted India’s e-commerce market, becoming one of the largest platforms by leveraging its global expertise. The company has also contributed to the Digital India initiative, promoting digital transactions and online shopping.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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