Shares of leading food delivery platforms Swiggy and Eternal Ltd (parent of Zomato) traded lower on December 26, 2025, as investor sentiment was weighed down by two major developments: the upcoming Zepto IPO filing and a nationwide strike by gig workers. The combination of competitive pressures and labor unrest has raised concerns about the near-term outlook for India’s food delivery and quick-commerce sector.
Market Performance
- Swiggy shares fell nearly 2% to ₹391.40, marking their fourth consecutive session of losses.
- Eternal shares dropped to ₹279.70, a five-month low, reflecting investor caution amid rising industry challenges.
- The decline coincided with Zepto’s confidential filing of its Draft Red Herring Prospectus (DRHP) with SEBI, signaling its intent to go public and intensifying competition in the quick-commerce space.
Gig Workers’ Strike Impact
The Telangana Gig and Platform Workers Union and the Indian Federation of App-Based Transport Workers called for an all-India strike on December 25 and December 31.
Key grievances include:
- Falling earnings despite rising delivery volumes.
- Long and unpredictable working hours.
- Unsafe delivery targets and arbitrary ID blocking.
- Lack of social security and welfare protections.
The strike, timed during peak demand days, has disrupted deliveries in several urban centers, raising concerns about revenue losses for platforms already facing margin pressures.
Zepto IPO Buzz
Quick-commerce player Zepto has confidentially filed its IPO papers with SEBI, aiming to raise funds for expansion. The move has heightened competitive tensions in the sector, as Zepto continues to gain market share in metro cities with its 10-minute delivery model.
Investors are closely watching whether Zepto’s listing will divert capital flows away from existing players like Swiggy and Eternal, further pressuring their valuations.
Industry Outlook
The food delivery and quick-commerce industry is at a crossroads:
- Labor unrest highlights the urgent need for better worker protections and sustainable pay structures.
- IPO activity signals investor appetite but also raises questions about profitability in a crowded market.
- Regulatory oversight may increase as SEBI and state governments respond to worker demands and competitive practices.
Analysts suggest that while short-term volatility is likely, long-term growth prospects remain strong given India’s expanding digital consumer base. However, companies must balance profitability, worker welfare, and competitive positioning to sustain investor confidence.
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