Deals Get Deeper as Amazon, Flipkart Crash the Quick Commerce Party

Image Source: The Financial Express

India’s quick commerce space is in the middle of a fierce price battle, with Amazon and Flipkart entering the fray and pushing discounts to record levels. Their aggressive expansion is shaking up a sector already crowded with players like Blinkit, Zepto, Swiggy Instamart, and JioMart.

Key Highlights:

Discounts Surge: Average discounts across categories have jumped to 20–25%, up from under 10% two years ago. In personal care, they’ve hit 35%, while dairy remains lowest at around 5% due to tight margins.
Why It’s Happening: With nearly eight major players now in the game, price has become the main differentiator. Experts say this intense competition will continue until the market consolidates to fewer players.
Cash Burn Rising: The sector’s monthly cash burn has reportedly surged to ₹1,300–1,500 crore, more than doubling in recent months. Companies are prioritizing market share over profitability, at least for now.
Category Impact: Besides personal care, heavy discounting is also seen in packaged foods, home care, beverages, and basic staples. Fresh produce pricing varies widely due to quality differences and isn’t included in most analyses.

What’s Next:

Analysts expect the discount war to persist, especially as Amazon Now and Flipkart Minutes ramp up operations. Until the dust settles, consumers can expect deeper deals—but at a high cost to platforms.

Sources: Economic Times Infra, ETtech.