Eternal, Swiggy shares fall up to 3% as Flipkart explores entry into India’s food delivery market
- 12th February 2026
- 07:00 PM
- 2 min read
Summary
Shares of Eternal and Swiggy fell up to 3% on February 12 after reports suggested that Flipkart is evaluating entry into India’s online food delivery market. The e-commerce major is said to be assessing a pilot launch in Bengaluru, potentially intensifying competition in the $9 billion segment.Mumbai | February 12
Shares of food delivery operators Eternal, the parent company of Zomato, and Swiggy declined in early trade after reports suggested that Flipkart is exploring a foray into India’s online food delivery business.
At 10:25 am, Eternal was trading 1.6% lower at ₹295.9, while Swiggy fell about 3% to ₹331.75.
Flipkart is evaluating a pilot in Bengaluru around May–June, with a broader rollout under consideration by late 2026 or early 2027. The company is assessing operating structures and positioning before committing to a formal launch.
Flipkart weighs food delivery entry
The Walmart-owned e-commerce platform is said to be examining whether to launch a standalone food delivery app or integrate with the government-backed Open Network for Digital Commerce (ONDC).
The discussions remain exploratory. However, groundwork for building a team has reportedly begun, indicating early-stage preparation.
Flipkart had earlier examined food delivery through ONDC but did not proceed beyond preliminary stages.
India’s online food delivery market size
India’s food delivery market is estimated at roughly $9 billion in FY25 and is projected to expand significantly over the next five years, driven by higher order frequency and improved delivery efficiency.
The sector has consolidated over time, with Zomato and Swiggy emerging as dominant players following exits by smaller competitors.
Recent quarterly updates indicated improved demand trends. Gross order value rose 21.3% year-on-year for Zomato and 20.5% for Swiggy in the October–December quarter.
At the same time, new formats such as rapid café-style delivery and hyperlocal offerings are reshaping consumer behaviour, even as broader consumption trends remain uneven.
Quick commerce network may provide leverage
Flipkart’s evaluation of food delivery comes alongside expansion of its quick commerce vertical, Minutes. The platform operates more than 800 dark stores and continues to scale its micro-warehouse network.
Existing logistics infrastructure could offer operational support if Flipkart proceeds with a food delivery launch, particularly in dense urban markets where speed and reliability are critical.
For Eternal and Swiggy, the possibility of a well-funded entrant could intensify competition in a business where scale and execution determine profitability.
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