The shares of Zomato-parent Eternal gained over 1 percent on June 11 after a large block deal took place on exchanges. The shares of the company were trading at Rs 258 apiece in the morning, snapping a two-day losing streak which was triggered by Rapido's foray into the food delivery business.

Nearly 60.93 lakh shares of the company, which represent 0.06 percent of its total equity, were traded in the block deal at an average price of Rs 256 per share. The total transaction was worth Rs 156 crore.

Eternal shares had seen significant decline recently amid buzz over cab-hailing platform Rapido's entry in the food delivery business with significantly lower commission charges. The shares of the Zomato-parent, along with rival Swiggy, tumbled after reports claimed that Rapido has begun onboarding restaurants for the pilot food delivery project in Bengaluru.

Rapido will charge a flat delivery fee of Rs 25 plus goods and service tax (GST) for all food orders above Rs 100 within the standard 4 kilometre radius. However, for all food orders that are worth Rs 100 and below within the same distance, the delivery cost will be Rs 20. Zomato and its rival Swiggy currently have platform fee, packaging charges, GST on such costs, delivery fee and more, which cumulatively push up prices.

According to its pitch to restaurateurs, a copy of which Moneycontrol has reviewed, Rapido is naming its food delivery segment as 'Ownly'. Rapido, in its pitch, said it enables 4 million rides in 500 Indian cities and has 30 million monthly active users, which positions it as a strong challenger brand, especially given its scale.

Rapido is also ensuring that online prices are at par with prices offline. "We will only be looking to work with partners who can commit to this stand of honest pricing," Rapido said in its proposal. "The price of a dish (excluding GST) is the final price the customer pays. There is no other addition from us or a restaurant partner. Offline price = Online price," it added.

Food delivery giants Swiggy and Zomato may face a valuation cut to the tune of 20 percent if Rapido manages to execute well after entering the segment, according to Karan Taurani, Executive Vice President at Elara Capital.

"Since the last three-four years, Zomato and Swiggy have maintained a duopoly over the segment. So the entry of a new player does come as a surprise," Karan Taurani told CNBC-TV18. He noted that Rapido has a logistical advantage over the other players due to its already existing fleet of nearly four million scooter riders all across the country.

While noting that Rapido has chances to succeed in the segment, Taurani noted that execution is key. "Unless the consumer experience is not as enhanced like Swiggy and Zomato, you will not see Rapido scaling up," he said during the media interaction.

When asked if Zomato and Swiggy may face a risk from Rapido's lower commission model for restaurants, Taurani said that the risk may emerge only if Rapido executes well. "We can't say that things are going to be worse for Zomato and Swiggy right now, because it is very early days to call them out. We will have to monitor what is the kind of customer traffic Rapido is generating, how many orders they are able to deliver, how many riders do they have, how they are improving their customer experience and more," he said.

While Zomato shares snapped its losing streak to trade in the green, its rival Swiggy saw its shares extend losses for the third consecutive session. The stock was trading in the red with marginal losses.