Swiggy, Eternal Stock Prices End the Day in Red; Competition in Food Delivery Space May Intensify With Entry of Rapido

Mumbai, June 10, 2025: Stocks of food delivery apps Swiggy and Eternal ended the day in red Today, 10th June, 2025. Eternal (Zomato) ended the day, down by 0.60% at Rs 255.30. Swiggy ended the day, down by 1.12% at Rs 360.50.

Stocks Slip Amidst Competitive Shake-Up

Swiggy’s share price slipped over 2%, currently trading at ₹356, while Eternal’s stock retreated by more than 1%, quoted at ₹254. The declines came in response to news that Rapido, known for its ride-hailing services, has launched a pilot food delivery programme in Bengaluru, featuring significantly lower commission rates than industry leaders Swiggy and Zomato.

Rapido’s Disruptive Commission Model Unveiled

Reports suggest Rapido has begun enlisting restaurants as part of its initial rollout. The company is offering a fixed commission of ₹25 for orders under ₹400, and ₹50 for orders above ₹400, translating to a fee of around 8–15%. This undercuts the standard 15–30% commission typically levied by Swiggy and Zomato.

Additionally, participating eateries are being urged to include dishes starting from ₹150, with promotional discounts being jointly finalised with Rapido. This strategic pricing and low commission structure could challenge the dominance of the current market leaders.

Rapido’s Logistics: A Strategic Advantage

Industry analysts highlight Rapido’s extensive infrastructure—an active base of approximately 4 million two-wheeler delivery riders—as a key enabler. However, the company’s ability to offer a comparable user experience to Swiggy and Zomato remains a pivotal test for long-term success.

Growing Cost Pressure on Existing Platforms

Meanwhile, existing players are already facing criticism over new cost structures. Zomato recently implemented a ‘long-distance fee’, charging restaurants between ₹20 and ₹40 per order depending on distance and order size. This has sparked discontent among restaurant partners, possibly increasing their receptiveness to Rapido’s leaner model.

Compliance Concerns Add to Industry Stress

In a related regulatory development, a Blinkit-linked dark store in Pune was instructed by Maharashtra’s FDA to stop food operations due to lack of a valid food safety license. This has added further pressure on established platforms to maintain compliance as competition intensifies.

Outlook: Disruption or Short-Term Stir?

With Rapido’s entry threatening to upend the duopoly in India’s food delivery space, attention now turns to the execution. While the cost advantage is evident, sustaining service quality and scaling effectively will determine whether this bold move translates into a market shift or a short-lived experiment.

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