Eternal has recently expanded its 10-minute delivery service, Amazon Now, to Mumbai after successful pilot programs in Bengaluru and Delhi. The e-commerce giant now operates approximately 100 dark stores across these three major Indian cities. While the service has shown promising growth with a 25% month-on-month increase in orders and Prime members tripling their shopping frequency after adoption, industry analysts remain skeptical about its potential to disrupt the current market leaders.

Market Dynamics and Analyst Perspectives

Analysts from prominent firms including Emkay, JM Financial, Nomura, and Morgan Stanley believe that incumbent players Blinkit and Swiggy maintain significant advantages in the quick commerce space. The stark difference in scale is evident in the number of dark stores operated by each company:

This substantial lead in infrastructure gives Blinkit and Swiggy a commanding position in the market. Analysts point to several factors that favor the established players:

1. Execution challenges for new entrants in the supply chain-heavy business
2. First-mover advantages in securing prime real estate locations
3. Established logistics networks

Financial Outlook and Targets

The positive outlook for the quick commerce sector is reflected in analyst recommendations:

• Emkay maintains a Buy rating on Zomato (which owns Blinkit) with a target price of Rs 330.00
• Nomura has raised its target for Zomato to Rs 370.00
• Morgan Stanley set an even more optimistic target of Rs 390.00

Blinkit, under Zomato's ownership, is making strides towards profitability. The company is expected to reach adjusted EBITDA breakeven by the fourth quarter of FY26. Additionally, Blinkit has set an ambitious target of expanding its network to 2,000 stores by December 2025, further solidifying its market position.

Stock Performance

The market's confidence in the quick commerce sector is reflected in recent stock movements:

• Zomato shares rose 1% to Rs 325.00, marking a significant 60% increase over the past six months
• Swiggy, while not publicly traded, has seen its valuation rise, with shares gaining 2% to Rs 427.00, representing a 19% increase over six months

Conclusion

While Amazon's entry into the quick commerce space adds a formidable competitor to the mix, analysts believe that Blinkit and Swiggy's established presence and scale will be difficult to overcome in the short term. The quick commerce market in India continues to evolve rapidly, with incumbent players working to strengthen their positions as new entrants like Amazon seek to carve out their share of this fast-growing sector.

Eternal , one of India's leading food delivery platforms, has announced a significant increase in its platform fee for food delivery orders. The company has raised the fee from ₹10.00 to ₹12.00, marking a 20% hike in the charges customers will incur when using the service.

Impact on Customers

The increase in platform fee directly affects Eternal's user base, who will now have to pay ₹2.00 more for each food delivery order placed through the app. This change comes at a time when food delivery services are facing increasing pressure to improve profitability while balancing customer satisfaction.

Pricing Strategy

Eternal's decision to raise its platform fee could be seen as a strategic move to boost revenue streams. The additional ₹2.00 per order, while seemingly small, has the potential to significantly impact the company's bottom line, considering the high volume of daily orders processed through the platform.

Market Implications

This fee hike may have broader implications for the competitive landscape of food delivery services in India. It remains to be seen how rival platforms will respond to Eternal's pricing adjustment and whether this move will influence industry-wide pricing strategies.

Customer Retention

While the increase is relatively modest, there are potential concerns about how this might affect customer retention and order frequency. Eternal will likely be monitoring customer behavior closely to assess any impact on order volumes or user engagement following this price adjustment.

Looking Ahead

As the food delivery market continues to evolve, companies like Eternal are constantly balancing the need for profitability with maintaining an attractive value proposition for customers. This fee increase reflects the ongoing challenges in the sector and the strategies employed by major players to navigate the competitive landscape.

Eternal's platform fee adjustment serves as a reminder of the dynamic nature of the food delivery industry, where pricing strategies play a crucial role in shaping market dynamics and consumer behavior.