Eternal, Swiggy drop as Rapido undercuts food delivery commission
Shares of
Zomato
parent
Eternal
and its duopolistic rival
Swiggy
dropped as much as 2.5% and 4% on Monday as
Rapido undercut them
in commissions levied from restaurants. The unlisted ride-hailing platform is looking to foray in the
food delivery
space.
Eternal shares closed 1.86% lower on BSE at Rs 256.99 per share, after hitting an intraday low of Rs 255.35. Prosus-backed
Swiggy
ended the day's trade 2.79% lower at Rs 364 a share, falling to Rs 360.10 apiece earlier in the day. The benchmark Sensex closed 0.31% higher at 82,445.21.
The drop in shares comes after
Rapido
began partnerships with restaurants for its online food delivery service at nearly 50% lower commissions than Swiggy and Zomato.
According to the agreed-upon terms with the industry body National Restaurants Association of India (NRAI), Rapido will charge a flat commission of Rs 25 for all orders below Rs 400, and Rs 50 for orders worth more than Rs 400. This translates to 8–15% of commission from restaurants, compared to 16–30% that
Zomato
and Swiggy charge, as ET reported.
Recent months have seen multiple small restaurant owners calling out what they alleged are "steep charges" levied by Zomato and Swiggy. "Zomato is becoming unsustainable for small restaurant owners like us," Vandit Malik, founder of The Garlic Bread, wrote on LinkedIn three weeks back. "To even be visible on the platform, I'm forced to spend Rs 30+ per order on ads. What's left? Pennies. Sometimes, not even that," he alleged.
The owners of another NCR-based small restaurant, Saffroma, wrote on X last week, which went viral, that it was quitting Zomato, alleging "zero payouts, mystery service charges and advertisements initiated without approval." The post has since been deleted.
Discover the stories of your interest
Blockchain
5 Stories
Cyber-safety
7 Stories
Fintech
9 Stories
E-comm
9 Stories
ML
8 Stories
Edtech
6 Stories
Food delivery outlook
India's online food delivery market is expected to more than double to $15 billion by March 2029, according to a December 18 report by JM Financial. Platforms had penetrated only about 11% of the country's total food consumption in 2023, compared with 40% in China and 58% in the US, it said.
In a note dated June 2, Global financial services firm Morgan Stanley picked Deepinder Goyal-led Eternal as its top investment pick in the Indian food delivery sector, citing market leadership in both quick commerce and food delivery, healthy unit economics, stronger balance sheet than peers, and sound risk-reward.
It kept its
target price for Eternal
's stock at Rs 320 per share, implying a potential upside of 24.5% from the stock's current price.
Initiating coverage on Swiggy
earlier this month, the brokerage firm pegged its target price for the stock at Rs 405 per share, marking a potential upside of 11.3%.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
27 minutes ago
- Time of India
Himachal Pradesh to open areas near India-China border for tourists
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Himachal Pradesh will open areas near India-China border , including strategically important Shipki La pass , for tourists.A beginning will be made on Tuesday with Shipki La, which is a high-altitude mountain pass that has been an old trade route between India and Tibet. It has an Army post and the border is manned by Indo-Tibetan Border Police (ITBP). So far, it was open for local residents and for limited trade between India and Tibet. Now, working with defence personnel and ITBP, Himachal Pradesh government has decided to ease restrictions and open up Shipki La Pass for tourists and adventure Indian resident will be able to visit this pass after furnishing an Aadhaar card. The Army will restrict the number of tourists per day. The initial plan is to allow 30 tourists per hour and 210 tourists a day. The tourists will be allowed to go till the border check post and come back. No photography of the strategic posts will be to ET, Himachal Pradesh chief minister Sukhvinder Singh Sukhu said, "We have been working with defence ministry for the last one and a half years to open up border areas for tourism in a restricted manner. We will first open Shipki La pass. Earlier, a permit was required for this area. This will be a big step for people of Kinnaur as we expect more tourist footfalls because of this."Tourists will be able to see the Chinese checkout and even roads within Chinese territory as at this spot the Indian checkout is at a higher level. Sukhu said, "This is just the first step. We will open more areas along India-China border." Himachal government is working towards opening Kaurik and Rangrik areas in Spiti La is in picturesque Kinnaur district at 4,000 m above sea level and is mostly snow covered and inaccessible during winter months. The state has now decided to use the summer months to open up the area for tourism.
Time of India
27 minutes ago
- Time of India
India looking for other magnet sources after China's curbs on rare earth metals
India is in talks with China on ensuring the supply of permanent magnets derived from rare earth minerals but is also working on 'alternate sources' for the critical components, commerce and industry minister Piyush Goyal said. He said the government is in constant touch with Indian industry to speed up the development of local sources. China, which controls 90% of the supply of rare earth magnets, has imposed curbs on supplies. These magnets are essential inputs in the manufacturing of cars, electric vehicles and renewable energy equipment, among others. 'There is a concern... our embassy is in dialogue with them (China)... commerce and industry ministry is also working,' Goyal said, adding that the government had already begun work on developing alternate sources. 'Hope Good Sense Prevails' Goyal was speaking to reporters after his interaction with local industry in Bern. "In a way, it's a wake-up call for all those who have become over-reliant on certain geographies. It's a wake-up call for the whole world that you need trusted partners in your supply chain,' the minister said. Auto industry and other industry bodies have represented the matter to the government seeking an early resolution of the problem. China had in April mandated special export licences for seven rare earth elements and related magnets. It is seeking an undertaking that permanent magnets it supplies will not be re-exported to the US, nor will they find applications in the defence industry. ET reported on June 4 that nine auto component manufacturers have received endorsement from the Chinese embassy in India for importing critical rare earth magnets, but supply has not resumed as the neighbouring country's commerce ministry has not given its nod. "Obviously, there are issues around the stopping of permanent magnets from China to India, which will affect our auto sector, particularly, and several white goods and other sectors. Some companies have put in their applications, and we hope that good sense prevails and they get their approvals for permanent magnets," the minister said. The Centre is also looking to Indian Rare Earths Ltd to speed up the development of domestic resources, Goyal said. Asked if the government will consider a production-linked incentive scheme for these magnets, Goyal said he had discussed the matter with the auto industry and was confident of resolving the matter. "They are in dialogue with our innovators, startups and they say they will take care of any funding requirement or pricing correction that may need to encourage faster rollout and growth of this sector," Goyal said. On alternative sources, the minister said these could also be some technologies that India is developing. "The government, the industry and startups and innovators are all working as a team and we are confident that there may be a problem in the short run but we will emerge winners in the mid to long runs," he said. (The reporter is in Bern at the invitation of the ministry of commerce & industry)
Time of India
27 minutes ago
- Time of India
Shongtong-Karcham gets 2026 deadline, HP bets big on hydro
Shimla: Himachal Pradesh chief minister Sukhvinder Singh Sukhu has set a firm Nov 2026 deadline for the completion of the long-delayed Shongtong-Karcham hydroelectric project, saying the 450-MW plant will generate Rs 1,000 crore in annual revenue and strengthen the state's green energy ambitions. Sukhu on Monday inspected the under-construction site in Kinnaur district — visiting both the power house at Karcham and the barrage site at Powari — where he met engineers and workers. He said that even though the project had dragged on for 13 years, the state's current Congress govt had fast-tracked its progress and was committed to commissioning it on schedule. "This project symbolises our focus on tapping river resources to drive economic growth," Sukhu said, adding that the state was moving actively to regain control over stalled or externally-managed hydroelectric initiatives. He claimed that the govt was assessing the total expenditure incurred on other major hydropower projects — including Dhaulasidh, Luhri, and Sunni — with plans to resume and regulate their construction under state-led terms. "Unlike the previous BJP govt, which compromised state interests, we are prioritising Himachal Pradesh's control over its energy assets," Sukhu said. The CM also announced that HP was advancing plans for a geothermal power facility at Tapri in Kinnaur and expanding its capacity in solar and green hydrogen energy. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký Undo Despite being an energy-surplus state, HP still buys electricity from neighbouring states during winter for Rs 5 to 6 a unit. Sukhu said the state was ramping up solar-energy generation to offset this seasonal gap. "It has 626 MW worth of solar-power projects in various stages of development currently through the Himachal Pradesh Power Corporation Limited (HPPCL)," he said. Revenue Minister Jagat Singh Negi and senior district officials accompanied Sukhu during the site visit. MSID:: 121728609 413 |
