Shares of Eternal fell around 1.8% to Rs 295.25 in early trade on Thursday, tracking weakness across the online food delivery space after reports that Flipkart is evaluating an entry into the segment.
The stock opened lower and remained under pressure amid concerns that a potential new large-scale competitor could intensify pricing and commission competition in a market currently dominated by two major players.
Flipkart’s food delivery plans weigh on sentiment
According to reports, Flipkart is considering launching a pilot food delivery service in Bengaluru around May–June, with a broader rollout possible by late 2026 or early 2027. The move would position the Walmart-owned ecommerce major directly against established players in a market estimated at $9 billion in FY25 and projected to grow significantly over the next five years.
Investors appear cautious about the possibility of increased competition, especially as Flipkart is said to be exploring both a standalone platform and a potential launch via ONDC.
Infrastructure advantage raises competitive concerns
Flipkart’s quick commerce arm, Minutes, reportedly operates over 800 dark stores, providing it with an existing logistics backbone. Market participants fear this infrastructure could help the company scale quickly if it enters food delivery, particularly in dense urban markets.
The decline in Eternal reflects broader risk-off sentiment in the sector rather than any company-specific development, as investors reassess competitive dynamics in India’s food delivery market.
