Swiggy, Eternal Shares Slide for Second Day Amid Buzz Over Rapido’s Entry Into Food Delivery

Shares of food tech major Swiggy and quick-commerce platform Eternal (Zomato parent company) extended their losing streak for a second straight day on Tuesday, as investor sentiments took a hit over reports that bike taxi startup Rapido may be gearing up to enter the food delivery space.

Swiggy’s stock slipped nearly 2% to Rs 357.50 while Eternal fell nearly 1% to Rs 254.74 on the NSE. The market reaction reflects growing anxiety around fresh competition in an already hyper-competitive market, where players are racing to boost profitability and customer stickiness.

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Rapido, on its part, has urged its partner restaurants to offer items worth as low as Rs 150, with discounts being limited to only those being agreed upon with the restaurants, a media report claimed citing sources.

According to media reports, Rapido is working on a food delivery service in select metros and is building a dedicated team to lead the charge. Job listings on Rapido’s careers page and hiring platforms suggest active recruitment for roles in food category management, business development, and operations—lending weight to the speculation.

The Bengaluru-based firm, which already operates a large fleet of bike taxis and auto-rickshaws, is expected to leverage its existing logistics network to deliver food more efficiently, especially in Tier-2 and Tier-3 cities where it enjoys strong ground presence.

Analysts tracking the sector claim that a new entrant could compel Swiggy to revisit aggressive discounting strategies-moves it had dialled down in a bid to move toward sustainable growth. Eternal, which operates in the fiercely competitive 10-minute grocery segment, is also under scrutiny. Investors have also raised apprehensions that if Rapido gains traction in food, it could soon diversify into quick-commerce deliveries as well—putting further pressure on players in the segment.

With India’s online food delivery market projected to grow to $25 billion by 2030, analysts believe that the entry of a well-capitalised and logistics-savvy player like Rapido could disrupt existing dynamics. However, analysts have cautioned that execution, differentiation, and unit economics will ultimately determine success.