Swiggy has informed its customers that it will be suspending its operations from May 12, 2022 in multiple cities.
The development comes on the same day when it came out that Swiggy has temporarily suspended operations of Swiggy Genie in 3 cities
Swiggy is doubling down on its quick commerce and food delivery business
After suspending its hyperlocal courier service Swiggy Genie, Bengaluru-based food aggregator giant Swiggy has now temporarily suspended operations of its subscription-based commerce platform Supr Daily.
The startup informed its customers that it will be suspending its operation from May 12 in multiple cities, including Delhi-NCR region. The startup is no longer taking any orders from customers.
Inc42 was the first to report on September 28, 2022 about Supr Daily founder and CEO Puneet Kumar quitting the startup. He was replaced by Swiggy cofounder Phani Kishan.
The move to suspend the operations of Supr Daily seems to be part of Swiggy’s plan to pull the plug on its multiple businesses to double down on its two focus areas – food delivery and Swiggy Instamart.
Earlier in the day, ET reported that Swiggy has temporarily shut operations of Genie across major metros as it was struggling to hire delivery personnel.
A Swiggy spokesperson in a statement said that the operations of Swiggy Genie were halted in 3 out of 68 cities. The spokesperson further added that the startup has been seeing a surge in food and grocery deliveries, thus forcing it to focus on these two areas.
Swiggy, which entered the decacorn club earlier this year after raising $700 Mn at over $10 Bn valuation, has already committed to invest around $700 Mn in its quick commerce business Instamart, further validating that it is in the quick commerce business for a longer run.
Swiggy competes with Reliance and Google-backed hyperlocal delivery platform Dunzo in the quick commerce segment. Zomato-backed Blinkit, and Zepto, founded by two 19-year-olds, are also trying to grab a larger share of the growing quick commerce market. Former Blinkit founder Saurav Kumar’s new venture Warpli is the latest entrant in the segment as it launched the app a couple of weeks ago.
As per a RedSeer report, the quick commerce market in India is expected to reach $5 Bn by 2025 from $0.3 Bn in 2021.
The development was first reported by Entrackr
