Eternal and Swiggy share price slipped in the stock market today, reacting to fresh buzz around Flipkart’s possible entry into India’s food delivery market.
The move triggered caution across delivery-tech counters. Investors didn’t wait. They reacted first.
Let’s break down what happened and why it matters.
Market Performance: Eternal and Swiggy React to Flipkart News
By mid-morning trade on February 12, both stocks were in the red.
- Eternal share price was down 1.6%, trading at Rs 295.9 per share
- Swiggy share price fell 3%, trading at Rs 331.75 per share
- Time of reference: 10:25 AM
The decline came after reports suggested that Flipkart is evaluating a foray into food delivery.
In the stock market today, news flow drives sentiment. And when a large player like Flipkart explores a $9 billion market, existing leaders feel the pressure immediately.
Main News: Flipkart Evaluates Entry into Food Delivery
Flipkart, owned by Walmart and currently preparing for its IPO journey, is said to be studying India’s online food delivery space.
Here’s what is being discussed:
- A pilot launch likely in Bengaluru
- Possible timeline: May–June
- Broader rollout may happen by late 2026 or early 2027
- Internal discussions are actively underway
- A dedicated team is already being built for this initiative
The development has direct implications for Eternal (parent of Zomato) and Swiggy, the two dominant players in the segment.
This is not just about food delivery. It’s about growth, market share, and competitive positioning ahead of a public listing.
The Market at Stake: India’s $9 Billion Food Delivery Space
India’s online food delivery market is not small anymore.
- Estimated market size: $9 billion in FY25
- Projected to reach: $25 billion by FY30
This growth potential explains why new formats are emerging and why companies are re-evaluating their playbooks.
The segment has gradually shifted from occasional indulgence to everyday consumption.
Better delivery speeds. Improved affordability. Stronger reliability.
Consumer behavior has evolved.
How Flipkart May Enter the Segment?
Flipkart is exploring two possible routes:
- Launching a standalone food delivery platform
- Building a buyer-side application on the government-backed ONDC (Open Network for Digital Commerce)
Both options are reportedly under review.
Interestingly, Flipkart had previously explored food delivery through ONDC about two years ago, alongside players like Ola and Paytm. That plan did not go beyond initial discussions.
This time, it appears more structured.
Industry Landscape: A Consolidated Market
India’s food delivery market has seen sharp consolidation.
Over the past few years:
- Smaller players exited
- The market became largely a two-player stronghold
- Zomato (Eternal) and Swiggy dominate
Globally too, most markets outside India and China typically settle with three to four major operators, often led by one dominant player.
That structure could change if Flipkart officially enters the field.
Growth Signals from Existing Players
In the October–December quarter, both major players saw healthy order growth.
Gross Order Value (GOV) growth (YoY):
- Zomato: 21.3%
- Swiggy: 20.5%
After several quarters of growth at the lower end of their medium-term guidance band of 18–22%, demand showed improvement.
At the same time, newer formats like 10-minute café-style deliveries have started gaining traction.
Consumption trends, however, remain uneven across regions.
Competitive Heat Is Rising
It’s not just Flipkart.
Urban mobility startup Rapido has scaled its Ownly food delivery platform across Bengaluru. Expansion plans include:
- Pune
- Mumbai
- Delhi-NCR
Ownly positions itself as addressing restaurant concerns around commissions and transparency on larger platforms.
So while Eternal and Swiggy share price reacted to Flipkart’s plans, the broader theme is clear — competition in food delivery is intensifying.
Flipkart’s Logistics Advantage: Minutes and Dark Stores
Another layer to this story is Flipkart’s quick commerce arm — Minutes.
According to people familiar with the matter:
- Minutes operates 800+ dark stores
- The company plans to expand micro-warehouse networks in coming months
This infrastructure matters.
In dense urban markets, speed and reliability are everything. Dark stores and micro-warehouses provide logistical leverage.
If Flipkart moves into food delivery, it won’t start from scratch on logistics.
That’s what the market is pricing in.
Why Eternal and Swiggy Share Price Reacted?
In the stock market today, prices move on future risk perception, not just current numbers.
Here’s what likely weighed on sentiment:
- A new large competitor evaluating entry
- Potential pricing pressure in the future
- Customer acquisition cost concerns
- Increased competition in urban markets
Even though Flipkart’s plan is still under evaluation, the headline alone was enough to trigger cautious trading.
That is how competitive markets behave.
Company Snapshot: Eternal and Swiggy
Eternal (Parent of Zomato)
- Major player in India’s online food delivery space
- Part of a duopoly structure in the segment
- Recorded 21.3% YoY growth in Gross Order Value in the latest quarter
Swiggy
- Core competitor in food delivery
- Reported 20.5% YoY Gross Order Value growth
- Strong presence across metro and tier-1 cities
Both companies operate in a market that has consolidated significantly over the past few years.
The entry of a large ecommerce player changes the narrative.
What This Means for the Food Delivery Ecosystem?
The food delivery segment is evolving.
- Faster delivery models are emerging
- Everyday consumption patterns are strengthening
- Platform economics are under scrutiny
- Logistics infrastructure is becoming critical
If Flipkart enters, the competitive map could shift.
But as of now, this remains an evaluation stage discussion.
Summary: Stock Market Today Reacts to Competitive Buzz
To sum it up:
- Eternal share price fell 1.6% to Rs 295.9
- Swiggy share price dropped 3% to Rs 331.75
- Trigger: Flipkart evaluating food delivery entry
- Potential pilot: Bengaluru, May–June
- Market size: $9 billion in FY25, projected to $25 billion by FY30
- Flipkart exploring standalone platform or ONDC route
- Minutes operates 800+ dark stores
The stock market today reacted sharply to possible disruption in the food delivery space.
Right now, it’s about positioning.
The story is not about confirmed launch. It’s about strategic intent.
And in markets, intent alone can move prices.
Eternal and Swiggy remain dominant players in a rapidly growing segment. But with new players exploring entry, the competitive intensity in India’s food delivery market is clearly rising.
This is a developing story.
And the market will keep watching every move closely.
Source: Moneycontrol
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