The Indian stock market saw early pressure on food delivery stocks on December 26, with Swiggy and Eternal shares dropping around 2% each. The decline follows a nationwide strike called by delivery partners and comes as quick commerce rival Zepto prepares to pre-file its draft IPO today.
Investors reacted cautiously as these developments unfolded, reflecting concerns over operational challenges and market sentiment.
Market Performance Snapshot
- Swiggy shares: Fell to Rs 391.40, marking the fourth consecutive session of losses.
- Eternal shares: Declined to a five-month low of Rs 279.70 in morning trade.
- Recent trend: Swiggy is down over 27% in 2025, while Eternal has gained around 2% this year despite recent volatility.
The drop comes ahead of a busy holiday season, traditionally a peak period for food delivery and quick commerce apps, highlighting the potential impact of workforce disruptions on business performance.
Nationwide Delivery Workers Strike
The Telangana Gig and Platform Workers Union (TGPWU) and the Indian Federation of App-Based Transport Workers (IFAT) have called for strikes on December 25 and December 31.
The unions cited several issues affecting delivery partners:
- Falling earnings and inconsistent pay structures
- Long and unpredictable working hours
- Unsafe delivery targets and pressure from ultra-fast delivery models
- Arbitrary account suspensions without due process
- Lack of basic welfare, social security, and accident coverage
Key demands from workers include:
- Transparent pay systems reflecting actual working hours and delivery costs
- Withdrawal of ultra-fast delivery timelines, such as 10-minute deliveries
- Better accident insurance and safety gear
- Guaranteed work allocation and mandatory rest breaks
- Stronger grievance redressal mechanisms at the app level
“Delivery workers are being pushed to breaking point by unsafe work models, falling incomes, and total absence of social protection. This strike is a collective call for justice, dignity, and accountability,” said Shaik Salauddin, founder president of TGPWU.
The strike comes at a critical time for the platforms, coinciding with high-demand days in food delivery and quick commerce, which likely affected investor confidence.
Zepto IPO Update
Adding to the market buzz, Zepto is set to pre-file its draft red herring prospectus (DRHP) confidentially on December 26.
- Founded in 2020, Zepto is targeting a listing in 2026, around six years after inception.
- The Bengaluru-based startup aims to become one of the youngest unicorns to go public in India’s quick commerce space.
- The confidential filing route allows Zepto to inform stakeholders discreetly ahead of its official IPO launch.
Investors are closely watching Zepto’s IPO journey as it sets the stage for one of the most awaited public listings in India’s fast-growing quick commerce sector.
Food Delivery Stocks Performance in Context
- Swiggy: Down over 4% in the past five days, 3% in six months, and 27% in 2025.
- Eternal: Fell 8% in the past month, but up 7% in six months, showing resilience despite short-term pressure.
The combination of workforce strikes and Zepto’s IPO news has created mixed sentiment, putting pressure on existing delivery stocks while investors monitor sector developments.
Summary
The Indian delivery sector faced turbulence on December 26 as Swiggy and Eternal shares declined amid a nationwide delivery workers strike. Safety concerns, falling earnings, and unpredictable schedules have prompted gig workers to take collective action.
At the same time, Zepto’s confidential IPO filing marks a significant moment for India’s quick commerce space, signaling growth and competition ahead.
Investors will likely continue to watch these developments closely, as labor actions and new listings shape market sentiment in the coming weeks.
Source: Moneycontrol
Easy & quick
Leave A Comment?