Eternal founder Deepinder Goyal has dismissed concerns about growing competition in the rapid food delivery market, saying the company’s Bistro platform has seen only a limited impact from rivals Swiggy’s Toing and Rapido’s Ownly. Goyal argued that both competing services rely largely on price-led customer acquisition rather than offering a differentiated product, making their business models difficult to sustain over the long term.
His comments come as quick food delivery emerges as one of the fastest-growing battlegrounds in India’s online food commerce industry. While Swiggy and Rapido have recently expanded into affordable, fast-delivery offerings, Eternal is doubling down on Bistro as its strategy to capture the mid-market segment without engaging in aggressive price competition.
Deepinder Goyal Says Competition Has Had Limited Impact
Addressing the performance of Bistro, Goyal said competition from Toing and Ownly has not materially affected the business.
According to him:
- The impact on Bistro has been limited.
- Rival platforms largely offer the same restaurant partners.
- Delivery times are similar or sometimes longer.
- Lower prices are being funded through reduced commissions and delivery fees.
Goyal argued that the current customer traction on competing platforms is primarily driven by discounts rather than a superior service proposition, raising questions about long-term sustainability.
Comparison of Quick Food Delivery Platforms
| Platform | Parent Company | Strategy |
|---|---|---|
| Bistro | Eternal | Mid-market rapid food delivery |
| Toing | Swiggy | Budget-focused quick food delivery |
| Ownly | Rapido | Affordable food delivery model |
Price-Led Growth May Be Difficult to Sustain
Goyal suggested that competitors are narrowing prices by charging restaurants lower commissions and reducing delivery fees, resulting in a revenue model that may be difficult to maintain over time.
He indicated that while such pricing strategies may attract customers initially, they do not necessarily create a durable competitive advantage unless backed by sustainable unit economics.
Bistro Remains Central to Eternal’s Strategy
Despite rising competition, Eternal continues to invest in Bistro as part of its broader food delivery strategy.
The company believes demand exists for:
- Faster meal delivery.
- Affordable pricing without excessive subsidies.
- Consistent delivery experience.
- Sustainable operating economics.
Management indicated that Bistro remains an important component of Eternal’s effort to expand beyond traditional restaurant delivery while leveraging its existing logistics network.
Key Takeaways
| Aspect | Details |
|---|---|
| Competition | Swiggy Toing and Rapido Ownly |
| Eternal’s View | Limited impact on Bistro |
| Main Concern | Price-driven customer acquisition |
| Long-Term Focus | Sustainable unit economics |
India’s Quick Food Delivery Market Heats Up
The rapid food delivery segment has become increasingly competitive as platforms seek to capture consumers looking for affordable meals delivered in shorter timeframes.
Companies are experimenting with:
- Low-cost meal options.
- Faster fulfillment.
- Lower delivery charges.
- Restaurant partnerships.
- Discount-led customer acquisition.
The growing competition is expected to intensify as companies attempt to balance market share growth with profitability, particularly after years of investment in quick commerce and food delivery infrastructure.
Looking Ahead
Deepinder Goyal’s comments suggest Eternal is prioritizing long-term sustainability over aggressive price competition as the rapid food delivery market evolves. While Swiggy’s Toing and Rapido’s Ownly continue to expand through lower pricing, Eternal believes Bistro can compete by leveraging operational efficiency and an established delivery network rather than relying heavily on subsidies.
Looking ahead, competition in India’s quick food delivery market is likely to intensify as platforms refine their business models and seek profitable growth. The ability to balance customer acquisition, restaurant partnerships, delivery speed, and sustainable unit economics will be a critical factor in determining which players emerge as long-term leaders in this rapidly evolving segment.
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