Amazon to Launch Quick Commerce Service in 100 Cities: 1,000 Micro-Fulfillment Centers to Open; Shares of Eternal and Swiggy Drop Up to 3% Following the News

Amazon has announced plans to launch its quick commerce service, ‘Amazon Now,’ across 100 cities in the country. Following this news, shares of Eternal (Zomato) and Swiggy witnessed a decline of up to 3% in the stock market on Tuesday (April 28). Currently, Amazon Now operates only in Delhi-NCR, Mumbai, and Bengaluru.

Amazon India had announced an investment of ₹2,800 crore last week, and this expansion is a part of that initiative. In a statement, the company stated that it would scale up its infrastructure to support this rollout.

To facilitate this, a network of over 1,000 micro-fulfillment centers will be established. These will serve as small warehouses designed to ensure deliveries are completed within a short timeframe.

Eternal and Swiggy Shares Slump in the Market

The impact of Amazon’s announcement is evident in the share prices of its competitor companies. On the NSE, shares of Eternal fell by 3.47%, hitting an intraday low of ₹246.63.

Meanwhile, Swiggy’s shares also declined by 2.78%, settling at ₹278.25. Market experts believe that Amazon’s entry into this space could intensify pressure on the growth and profit margins of existing players.

16,000 Farmers to Benefit

Harsh Goyal, Vice President (Everyday Essentials) at Amazon India, stated, “We have accelerated our expansion plans.” He added that, with the help of over 1,000 micro-fulfillment centers, the company aims to extend its reach to 100 cities.

He further explained that this expansion would enable over 16,000 farmers to leverage Amazon’s technology to sell their fresh produce directly to customers. Amazon Services to Launch in These Cities

Amazon Now will soon launch its services in cities such as Pune, Hyderabad, Chennai, Kolkata, Jaipur, Lucknow, Kanpur, Chandigarh, Ahmedabad, Meerut, Mysore, Panipat, Kochi, Amritsar, Mangalore, and Visakhapatnam. However, the company has not yet set a definitive timeline for this.