Eternal well placed as price war unlikely in quick commerce

The quick commerce sector is likely to see intensified competition as Swiggy has recently raised more funds and Zepto issaid to be preparing for an initial public offering (IPO).

- DEVANGSHU DATTA

However, Eternal unit Blinkit remains the leader when it comes to financials and unit economics. Competition is, and will continue to be, an important monitorable. But it may not lead to a price war. Eternal and Swiggy are listed concerns who would be reluctant to do this, while Zepto should also avoid this, as it would impact its financials and that could hurt valuations going into its listing.

Blinkit’s losses stem from aggressive expansion, which isa strategic move. It could actually improve profitability quite quickly, but it opted for growth to try and take market share. Cuts in the goods and sales tax (GST) and festive seasonality have together led to discounts to liquidate inventory, which should normalise from the fourth quarter (Q4FY26).