Swiggy and Eternal shares remained stable on Tuesday despite government directions to halt 10-minute delivery guarantees on quick commerce platforms. Elara Capital has released an analysis explaining why this regulatory move could actually benefit these companies.

Elara Capital's Positive Outlook

The brokerage firm views the removal of the 10-minute benchmark from quick-commerce apps as net neutral to positive for both Swiggy and Eternal. According to Elara Capital, metro demand for quick-commerce has already been entrenched, effectively ruling out any significant negative impact from this regulatory change.

Delivery Promises Were Largely Optics-Driven

Elara Capital emphasizes that the 10-minute delivery threshold was primarily optics-driven rather than a fundamental business guarantee. The firm notes that actual delivery timelines shown on these apps were largely dynamic, contrasting sharply with traditional guaranteed delivery services like Domino's 30-minute pizza delivery promise.

This dynamic nature of delivery timelines means that removing the 10-minute branding won't significantly alter the operational reality for these platforms. The brokerage expects no impact on volumes or growth from this regulatory adjustment.

Company Response and Clarifications

Eternal issued a clarification late Tuesday stating there is no change in the business model of its quick commerce business Blinkit after reports emerged about removing the 10-minute delivery promise from its branding to comply with government directions.

Regulatory Background and Worker Safety Concerns

The government's directive comes amid growing concerns about worker well-being and earnings in the quick-commerce space, which has led to widespread protests and media attention. Union Labour Minister Mansukh Mandaviya met with platform representatives, emphasizing the need to prioritize delivery partner safety over speed guarantees.

Earlier this month, the Labour Ministry proposed a 90-day annual work threshold as mandatory eligibility criteria for gig and platform workers to access social security under new draft rules on the Social Security Code 2020, published on December 31.

Market Impact Assessment

The stable stock performance of both Swiggy and Eternal following the announcement suggests that investors share Elara Capital's view that this regulatory change won't materially impact business fundamentals. The established nature of quick-commerce demand in metropolitan areas provides a solid foundation that doesn't rely heavily on specific delivery time promises.

The Labour Ministry has issued a directive to quick-commerce platforms, asking them to prioritize delivery partner safety over speed guarantees by removing 10-minute delivery thresholds. Union Labour Minister Mansukh Mandaviya met with representatives from major platforms to communicate this policy shift, marking a significant regulatory intervention in the rapidly growing quick-commerce sector.

Market Response to Regulatory Changes

The announcement has triggered varied market reactions among quick-commerce stocks. Swiggy shares declined approximately 1% during trading, while Zomato demonstrated resilience with gains despite the regulatory pressure.

Zomato's positive performance was attributed to expectations of MSCI inclusion and anticipated higher foreign investment flows, which helped offset concerns about the delivery time restrictions.

New Social Security Framework for Gig Workers

The Labour Ministry has introduced comprehensive draft rules under the Social Security Code 2020, establishing new standards for platform worker benefits. The proposed framework includes a 90-day annual work threshold as mandatory eligibility criteria for gig and platform workers to access social security benefits.

Key regulatory developments include:

• Four labour codes, including the Social Security Code 2020, were notified on November 21, 2025
• Draft rules published on December 31 for stakeholder feedback
• 90-day annual work threshold proposed for social security eligibility
• Focus shift from delivery speed to worker safety

Analyst Outlook and Market Sentiment

Despite regulatory challenges, analyst sentiment remains overwhelmingly positive for both companies. The investment community continues to view these platforms as strong growth opportunities in the expanding quick-commerce market.

*Note: The article references "Eternal" which appears to be a data error referring to Zomato.

The substantial upside potential projected by analysts suggests confidence in the companies' ability to adapt to regulatory changes while maintaining growth trajectories. The shift away from 10-minute delivery promises may actually benefit long-term sustainability by reducing operational pressures and improving worker conditions, potentially leading to more stable business models in the evolving quick-commerce landscape.