Amazon is shopping for Swiggy’s Instamart: Report

E-commerce giant Amazon is eyeing a major acquisition in Swiggy’s fast-paced retail segment, Instamart. Fast-paced retail refers to the quick delivery of groceries and everyday essentials, a sector that is growing rapidly. Swiggy’s fast-paced retail platform, Instamart, is expanding its reach and capabilities, making it a valuable asset in this space. Amazon’s interest in Instamart likely reflects its strategy to strengthen its position in the fast-paced retail space, potentially leading to collaborations or acquisitions.

No official offer has been made yet, and initial talks suggest that the deal is unlikely to close, given its complicated structure in its current form. Speaking on the subject, ET spoke to sources close to the situation.

“Amazon has shown interest in either acquiring a stake in the ongoing pre-IPO offering or making a buyout offer for Instamart… but there are a lot of hurdles at the moment,” ET quoted the source as saying.

However, another ET source said Swiggy is unlikely to sell its instant transactions business alone, and Amazon is not interested in the food delivery sector, where growth is starting to plateau.

Another e-commerce giant Flipkart was also considered to acquire Swiggy’s Instamart, but the two companies could not agree on finances, says another ET report.

“Buying the entire company will be too expensive at a valuation of $10-12 billion. Plus, Amazon is not known for acquiring minority stakes,” another source said.

The growing market for fast-paced trading

The world of online delivery has revolutionized the way we shop, and now alcoholic beverages are joining the fun. Food and grocery delivery giants like Swiggy, Zomato, Blinkit, and BigBasket are teaming up with alcoholic beverage companies and local governments to deliver alcoholic beverages 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.

The initial focus will be on low-alcohol beverages such as beer, wine and liqueurs. State officials 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 eat up the entire market? Read more