Archive · 10 Nov 2025
Price Wars in Quick Delivery Impact Eternal & Swiggy Shares
Imagine delivery companies like Swiggy and Eternal are in a big fight to be the fastest at bringing you groceries.
To win, they are offering lots of discounts and making it cheaper to order.
This is like a 'price war.'
While this is good for customers who get cheaper deals, it's making investors worried.
They are concerned that these companies are spending too much money on discounts and not making enough profit.
This worry has caused the stock prices of Eternal and Swiggy to go down.
Some experts think this race to offer the lowest prices can't last forever and might hurt the companies in the long run.
Even Swiggy and another company called Zepto are planning to ask for more money from investors soon, but this price war might make investors hesitant.
Heated discount wars among quick-delivery firms are pressuring shares of Eternal and Swiggy.
Companies are prioritizing growth and market share through aggressive discounting, leading to concerns about profitability.
Eternal's shares dropped nearly 4% last week, and Swiggy's stock has declined for four consecutive weeks due to intense rivalry.
The price war mirrors trends in China, where aggressive discounting has led to significant market value loss for industry leaders.
Investor sentiment is affected ahead of planned funding rounds for Swiggy and Zepto due to the focus on growth over margins.
- Who
- Eternal Ltd., Swiggy Ltd., Zepto Pvt. Ltd., Amazon.com Inc., Flipkart India Pvt., DMart Ready, MRG Capital
- What
- A price war characterized by heavy discounting in the quick-delivery and online grocery sectors is negatively impacting the share prices of key players like Eternal and Swiggy.
- When
- Recently, with share price drops last week and ongoing discounting strategies.
- Where
- India
- Why
- Intensifying competition and a focus on growth over margins is leading companies to offer deep discounts, raising concerns about future profitability and sustainability.
Focus on Growth and Market Share
Concerns over Profitability and Sustainability
Discounting Strategies
Focus on Growth and Market Share
Quick-commerce firms like Swiggy and Zepto are ramping up discounting and lowering minimum order values to gain market share, as seen with Swiggy's Instamart and Zepto removing charges for free deliveries.
Concerns over Profitability and Sustainability
The intensified price war, with firms like Amazon Now, DMart Ready, and Flipkart Minutes offering aggressive discounts, raises concerns about long-term profitability, potentially leading to a 'race to the bottom' as companies burn cash.
Investor Sentiment Ahead of Funding Rounds
Focus on Growth and Market Share
Companies like Swiggy and Zepto are aggressively pursuing market share through discounts, preparing for significant funding rounds like Swiggy's follow-on sale and Zepto's IPO.
Concerns over Profitability and Sustainability
The ongoing discounting and focus on growth over margins are negatively impacting investor sentiment, as evidenced by the drop in shares for Eternal and Swiggy, and mirrors situations in China where discounting led to market value loss.
- Impacted Companies
- Eternal Ltd., Swiggy Ltd., Zepto Pvt. Ltd., Amazon.com Inc., Flipkart India Pvt., DMart Ready
- Market Sector
- Quick-commerce, Online Grocery Delivery
- Key Strategies Employed
- Discounting, Lowering minimum order values, Free deliveries
- Recent Share Performance
- Eternal shares dropped nearly 4%; Swiggy shares declined for a fourth week
- Upcoming Funding Rounds
- Swiggy: Follow-on sale (over $1 billion); Zepto: IPO
- Expert Opinion
- Quick commerce market is not infinitely expanding; intense race to the bottom with cash burn.