Eternal and Swiggy shares have cratered as Amazon and Flipkart muscle into India's 10-minute delivery market. Eternal slid 28% from its October peak while Swiggy plunged 47% from September highs, erasing over $15 billion in combined market value as investors fear intensifying competition from deep-pocketed rivals.

Amazon is accelerating expansion of its Amazon Now service to more than 300 Indian cities, up from just 15 currently, while pledging $13 billion additional investment in AI and cloud infrastructure. Flipkart Minutes already operates 1,000 dark stores across 130 cities and plans 1,500 stores in 180-plus cities. Blinkit maintains the largest network with 2,243 dark stores versus Swiggy's 1,143, according to Macquarie research.

Macquarie slashed target prices and downgraded Swiggy to Underperform, keeping its Underperform rating on Eternal. Both companies face mounting losses—Swiggy lost about $460 million annually while Zepto lost over $600 million. Despite Blinkit achieving Ebitda-level profitability in the December quarter, the pricing war shows no signs of easing as demand spreads beyond metros into Tier 2 and 3 towns.

The sector remains in a landgrab phase with elevated competition expected for years rather than quarters. Reliance Retail's 3,100-plus physical stores across 1,200 cities add another formidable player to the mix, complicating the path to profitability for all quick commerce operators.