Swiggy, Eternal Under Pressure Amid Amazon's Quick Commerce Expansion Says Macquarie — Check Downside
Macquarie remains constructive on the quick commerce sector growth but expects material losses, pushing back against the narrative of a sharp improvement in profitability.
As Amazon steps up its quick-commerce push by accelerating the rollout of its Amazon Now service, brokerage firm Macquarie questions whether the expansion race is a “Field of Dreams” opportunity or a “Pyrrhic land grab,” noting that the allure of an “enormous” total addressable market means competition will remain strong and rising from multiple fronts.
Macquarie remains constructive on the quick commerce sector growth but expects material, persistent losses, pushing back against the narrative of a sharp improvement in profitability driven by consolidation. It maintains 'underperform' ratings on Zomato-parent Eternal and Swiggy. The brokerage set a target price of Rs 200 on Eternal, implying a 33% downside, and Rs 285 on Swiggy, noting a potential 28.6% downside.
Amazon Now’s pricing model is designed to attract high-frequency users, noted the brokerage. The service charges no handling fees, offers free delivery on orders above Rs 99, and provides cashback of Rs 50, Rs 100, and Rs 200 on order values above Rs 399, Rs 749, and Rs 1,399, respectively.
The current phase of rapid expansion is concentrated in Bengaluru, Delhi, and Mumbai. Amazon Now currently offers fast delivery of daily essentials and groceries, along with same-day delivery for one million products and next-day delivery for four million more.
The brokerage finds Amazon Now’s cashback-led strategy more attractive than pure discounts, arguing that cashback has the potential to create a virtuous rewards loop — with purchases of commoditised essentials earning benefits that can be redeemed for discretionary spending across Amazon’s broader e-commerce platform.
Macquarie sees this rewards ecosystem approach as applicable for Flipkart, BigBasket (Tata Neu), and JioMart (Reliance), but less so for QC-native players like Blinkit and Zepto.
Competitive intensity is also being fuelled by fresh capital in the sector, as per the report. With Zepto raising $300 million in October 2025 and Swiggy seeking to raise $1.1 billion via a QIP, Macquarie believes the potential for any “meaningful customer fees–driven margin” has been materially dented.
Earlier fundraises at Zepto were used primarily for customer acquisition, while the latest round is expected to focus on lower platform and delivery fees as well as discounts to drive deeper customer engagement, the brokerage said.
