Investing.com– Features of Zomato Ltd (NSE: ) fell sharply on Tuesday after the Indian food delivery firm reported weaker earnings in the December quarter amid heightened competition in the quick commerce sector for its Blinkit unit.

Zomato’s NSE-listed shares fell 10.9% to 213.50 rupees at 11:08 IST (05:38 GMT), having fallen 13% earlier. This compares to a 0.8% decline in the benchmark.

Zomato’s net income fell 57% to 590 million rupees ($7 million) in the three months to Dec. 31, missing Bloomberg estimates of 230 million rupees.

The decline in profits was driven mainly by the weakness of Zomato’s e-commerce platform Blinkit, amid rapidly increasing competition in the sector from rivals such as Swiggy’s Instamart, Zepto, as well as newcomers or, deep-pocketed entrants including Walmart-backed Flipkart, Tata Group’s BigBasket and Amazon.com (NASDAQ: ).

Zomato’s total revenue grew to 54.05 billion rupees, just scraping past estimates of 53.82 billion rupees.

Blinkit remains a major growth driver for the company, as the platform still maintains its leadership in India’s fast-paced commerce sector. But this lead was seen to shrink significantly in the December quarter, amid increasing competition.

The unit launched aggressive discounts to capture more market share and revenue. But this trend has eroded Zomato’s profit margins, with revenue from food delivery- Zomato’s biggest earner- doing little to offset the increased margin pressure.