Swiggy shuts down delivery services in 5 cities. Know details
- Swiggy has announced that its delivery service will be suspended in five cities
- The delivery services are being suspended due to financial difficulties caused by the surge in demand
- Swggy's delivery services has grown to fulfil 200,000 daily orders across six cities
Swiggy, a food and grocery delivery platform, has announced that its subscription-based delivery service, Supr Daily, will be suspended in five cities: Delhi NCR, Mumbai, Pune, Hyderabad, and Chennai.
Swiggy's Genie pick-and-drop service is also being suspended in Mumbai, Bengaluru and Hyderabad. Genie will not be available in a few places for the time being due to a surge in demand and a dearth of delivery partners, whereas Supr Daily is being scaled back for financial reasons.
Supr Daily is a subscription-based daily necessity and grocery delivery service.
Swiggy obtained Supr Daily in mid-2018, and it was serving around 6,000 orders per day in a few Mumbai suburbs. Supr Daily services have grown to fulfil 200,000 daily orders across six cities in the previous four years, but profitability remains elusive.
Supr Daily CEO Phani Kishan sent an email to all Supr Daily employees, that said “While we are now an inalienable part of our consumers’ lives, we, unfortunately, are yet to demonstrate a clear path to profitability. Today, we find ourselves in a situation where we end up spending a significant amount of time & money managing the business - distracting ourselves from our primary goals of establishing the business market fit. As we go into the year, we must organise ourselves in a way that best sets us up to hit our goals.” Phani Kishan said in an email to all Supr Daily employees. We have a detailed transition and closure plan in place to make it less painful for our users as well as brand and vendor partners. We will continue to serve users in Bangalore and double down on our efforts here.”
As the company right-sizes, the restructuring will affect personnel in these five cities as well as certain corporate staff.
Swiggy's main competitor Zomato has also been facing pressure in the last year. While its stock peaked at Rs 169.10 on the BSE on November 16, 2021, it has since plummeted by more than 70%, causing investors to lose approximately Rs 1 trillion in market value. The food delivery service is currently trading at a discount to its previous private valuation of $5.4 billion in early 2021.
Swiggy was valued at $10.7 billion last year.