India’s quick commerce sector is witnessing an unprecedented price war, with platforms like Blinkit, Zepto, Instamart, Flipkart Minutes, and Amazon Now offering record-high discounts to outpace rivals and capture consumer attention.
Discounts Surge Amid Rising Competition
- Average discounts across categories have jumped to 20–25% off MRP, up from under 10% two years ago.
- Personal care products lead the markdown race with discounts reaching up to 35%, followed by packaged foods, staples, beverages, and home care items.
- Dairy products remain least discounted (~5%) due to low margins.
New Entrants Fuel the Fire
The entry of Amazon and Flipkart into the quick commerce space has intensified competition, pushing established players to ramp up promotional spending despite mounting losses.
“Unless the market consolidates to 4–5 players, this level of discounting will persist,” said Karan Taurani, EVP at Elara Capital.
Cash Burn and Profitability Concerns
- The sector’s monthly cash burn has surged to ₹1,300–1,500 crore, more than doubling in recent months.
- Blinkit’s parent company Eternal saw net profit drop to ₹39 crore in Q1 FY26, down from ₹175 crore a year ago.
- Swiggy reported a net loss of ₹1,081 crore, nearly double its previous year’s figure.
What’s Driving the Trend?
With user experience largely uniform across platforms, price has become the key differentiator. Analysts believe this aggressive discounting strategy is aimed at customer acquisition and retention, even if it delays profitability.
