Eternal Shares Rebound After Block Deal Despite Rapido’s Food Delivery Entry

Shares of Eternal Ltd, the parent company of Zomato, gained over 1 percent in early trade on Tuesday, trading at ₹258, following a major block deal on the exchanges. This recovery marks a break in a two-day losing streak that was sparked by the entry of cab-hailing platform Rapido into the food delivery space. In the block deal, nearly 60.93 lakh shares, representing 0.06 percent of the company’s total equity, were traded at an average price of ₹256 per share, amounting to a transaction worth approximately ₹156 crore. Investor sentiment around Eternal had turned cautious in recent sessions after reports emerged that Rapido had launched a pilot food delivery project in Bengaluru under the brand name ‘Ownly’, offering lower delivery charges and zero markups on menu prices. The service promises a flat delivery fee of ₹25 plus GST for orders above ₹100 within a 4 km radius, and ₹20 plus GST for smaller orders, undercutting the fee structure of established players like Zomato and Swiggy. Rapido, which facilitates over 4 million rides in 500 cities and claims 30 million monthly active users, is positioning itself as a serious challenger. According to its pitch to restaurant partners, the company is committed to maintaining offline-online price parity, eliminating hidden charges often associated with food aggregators. Analysts are closely watching the development. Karan Taurani, Executive Vice President at Elara Capital, stated that the entry of a new player could be disruptive if executed efficiently. He estimated that Zomato and Swiggy could face a valuation correction of up to 20 percent should Rapido gain traction. However, he added a note of caution, saying: “It’s still early days. Rapido’s success will depend on customer experience, delivery efficiency, and order volumes.” While Zomato’s parent Eternal saw a modest recovery, rival Swiggy reportedly continued its downward trend, marking the third straight session of losses.