Amazon Goes Shopping For Swiggy's Instamart: Report Amazon has approached Swiggy to buy its Instamart segment, as per report
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E-commerce giant, Amazon, is eyeing a big acquisition in Swiggy's quick commerce segment, Instamart. Quick commerce refers to the rapid delivery of groceries and daily essentials, a sector that has been growing rapidly. Instamart, Swiggy's quick commerce platform, has been expanding its reach and capabilities, making it a valuable asset in this market. Amazon's interest in Instamart likely reflects its strategy to strengthen its position in the quick commerce space, potentially leading to collaborations or acquisitions.
There hasn't been an official offer yet and the early discussions draw a difficult picture of a deal being completed given the complicated structure of the deal in its current form.Talking about the subject matter, ET spoke with sources who were close with the situation.
"Amazon has swooped in with interest to either pick up a stake in the ongoing pre-IPO placement or a buyout proposal for Instamart… but there are multiple roadblocks at the moment," cited a source to ET.
However, another source stated ET that Swiggy is unlikely to sell only its quick commerce business and Amazon won't be interested in the food delivery space where growth is starting to plateau.
Another e-commerce giant, Flipkart, was also in the running for acquiring Swiggy's Instamart business but both companies couldn't come into an agreement over the financials, stated another report by ET.
"Buying the entire company will be too expensive at a valuation of $10-12 billion. Also, Amazon is not typically known to pick up minority stakes," quoted another source.
Evolving quick commerce market
The world of online delivery has revolutionised the way we shop, and now, alcoholic beverages are joining the party. Food and grocery delivery giants like Swiggy, Zomato, Blinkit, and BigBasket are teaming up with liquor companies and local authorities to bring liquor drinks right to the customer's doorstep. The pilot project is set to launch in select states, including New Delhi, Karnataka, Haryana, Punjab, Tamil Nadu, Goa, and Kerala.
Initially, the focus will be on low-alcohol beverages like beer, wine, and liqueurs. State authorities are seeking feedback from e-commerce platforms and spirits manufacturers to weigh the pros and cons of online alcohol delivery. Will this new trend raise the bar or create a buzzkill? Read more
