Why are food delivery platforms Swiggy, Zomato shares falling in trade?

Swiggy and Zomato shares fell up to 4.4 percent on Wednesday, December 11, 2024, after reports suggested that Amazon India is set to introduce a 15-minute delivery service in Bengaluru later this month. Around 9:48 AM, Swiggy shares were down 4.25 percent at Rs 520.45 per share and Zomato shares were down 1.23 percent at Rs 292.25 per share. In comparison, BSE Sensex was down 0.04 percent at 81,480.50.

As per reports, Amazon took the step after it noticed that urban customers increasingly demand quicker delivery of everyday essentials.

This initiative marks Amazon's first venture into offering a 15-minute delivery service globally. Although the name of the service remains undisclosed, this service will initially be rolled out in Bengaluru and will include 1,000-2,000 products, with plans to expand to other cities in the future, as reports.

The US-based company has become the sixth significant player to enter India's fast-growing quick commerce sector, which is generating over $6 billion in annual revenue. The market is primarily active in around 24 cities, with leading players like Zomato's BlinkIt, Swiggy, and Nexus-supported Zepto holding the largest shares.