Amazon & Flipkart Near Key Scale Milestone, Moderation Expected in Quick-Commerce Market
India's quick-commerce market may see further moderation in competition as Amazon and Flipkart approach a key scale milestone, according to Jignanshu Gor, Director & Senior Research Analyst at Bernstein. Crossing 1,000 dark stores and small warehouses is an important benchmark for companies to focus on unit economics.
Gor said that most companies take a pause after reaching this scale to figure out how their unit economics evolve. The market has expanded from its earlier three-player structure, with Amazon and Flipkart accelerating their quick-commerce expansion over the past year.
Blinkit continues to lead in the market, but Bernstein sees some moderation in price-led competition as Blinkit and Swiggy have reduced aggressive pricing, while Zepto has cut discounts and shifted some of its marketing spending towards its membership-based model. Amazon and Flipkart are still focused on acquiring customers but are gradually reducing incentives offered to them.