Swiggy: Swiggy closes food delivery app in 10 minutes, decision to close after a year of launch

Swiggy: Bengaluru-based leading food delivery company Swiggy has shut down its standalone app Snack, which delivered food in 10-15 minutes, less than a year after launching the service, according to an internal email sent to its employees. The company was finding it difficult to convert orders into profits in this model.

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The email, sent on February 19, said that while product-market fit was beginning to be seen, it was not possible to implement it on a large scale on a permanent basis. The email further said, “Product-market fit was emerging, but it was challenging to implement it on a large scale due to macroeconomic conditions. We want to focus all our energy on innovations that provide strong potential in the long term. It is with this in mind that we have taken this decision.”

The snack was initially launched in parts of Bengaluru and later expanded to Gurugram and Noida. However, the service remained limited to a few markets and did not achieve widespread national expansion.

Competition is continuously increasing in the food delivery sector. Mobility platform Rapido is also planning to enter this market. There has been an increase in activity in the food delivery sector, and mobile platform Rapido is also preparing to enter this segment. On the other hand, Swiggy has suffered losses for three consecutive quarters, due to which the company has needed to raise fresh capital through Qualified Institutional Placement. Strengthening its strategy, the Bengaluru-based company is winding down its loss-making businesses, including snacks.