Eternal And Swiggy Share Price Fall As Flipkart Announces Food Delivery Launch

The Eternal share price and Swiggy share price declined on Friday after Flipkart announced plans to launch its food delivery business in the coming weeks. The announcement raised concerns over increased competition in India’s online food delivery market, where Eternal-owned Zomato and Swiggy are the two dominant players.

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At around 3 p.m., the Eternal share price was trading at ₹280 on the NSE, down 2.47% from the previous close. The Swiggy share price fell 3.77% to ₹251.70 as investors reacted to the prospect of another large player entering the segment.

Flipkart Confirms Entry Into Food Delivery

In an interview with Moneycontrol, Flipkart Group Chief Executive Officer Kalyan Krishnamurthy said the company would roll out its food delivery service within the next few weeks.

He said Flipkart plans to launch the offering on a limited scale initially, evaluate customer response and refine the service before expanding operations. Krishnamurthy added that the company intends to improve the product based on customer feedback before scaling it across markets.

The announcement marks Flipkart’s formal entry into a business currently led by Eternal’s Zomato and Swiggy.

Investor Focus Shifts To Competitive Landscape

The proposed launch is expected to intensify competition in the online food delivery space, where companies continue to invest in customer acquisition, delivery infrastructure and merchant partnerships.

The decline in the Eternal share price and Swiggy share price reflected investor caution over the possibility of higher competitive spending as another major technology platform enters the sector.

While Flipkart has not disclosed the geographic rollout, pricing strategy or investment plan for the new business, its entry is likely to broaden consumer choices in the food delivery market.

Swiggy Approves Foreign Ownership Cap

Separately, Swiggy’s board approved a proposal to cap aggregate foreign ownership at 49.5% on a fully diluted basis.

According to the company, the limit will apply to foreign investors, including foreign portfolio investors (FPIs), non-resident Indians (NRIs) and foreign-owned or controlled Indian entities. Investments made through the non-repatriation route will not be included within the ceiling.

As reported by NDTV Profit, UBS said the revised limit leaves relatively little room for additional foreign shareholding while giving the company greater strategic and operational flexibility under applicable regulations.

Market Awaits Further Details

Flipkart has yet to announce a launch date, city-wise rollout plan or commercial model for its food delivery business. The company’s phased approach suggests that the service will initially be tested before wider expansion.

For now, market participants are likely to track further announcements from Flipkart alongside responses from existing players. Eternal stock price and Swiggy stock price will continue to be in the limelight as investors analyze the impact that the stiff competition might have on their growth strategies.