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Swiggy shuts down Snacc as 10-minute food delivery becomes less profitable
Swiggy shuts down Snacc as 10-minute food delivery becomes less profitable
Food and grocery major Swiggy has decided to shutter Snacc, a dedicated app it launched for 15-minute food deliveries, just a year after the offering was launched as the company struggled to make orders profitable, as per an internal email seen by Moneycontrol.
“While the product market fit was emerging, the broader economics made it challenging to scale. We want to concentrate all our energies on innovation that drives stronger long term potential. In line with this, we have taken this decision,” the email, sent on February 19, said.
Swiggy did not immediately reply to Moneycontrol’s queries.
Moneycontrol was first to report Swiggy had launched Snacc in January 2025 at a time when 10-minute food deliveries was becoming a hot theme. Rivals such as Blinkit launched Bistro under a different app and Zepto launched a dedicated app for Zepto Cafe. The other, and smaller, players like Accel-funded Swish had begun to gain traction among investors and users alike around that time, too.
Food delivery competition
Overall, the food delivery market has also seen heightened action as Rapido, a mobility platform, charts plans to enter the segment.
Swiggy, over the past quarters, has been reporting back-t0-back losses which led the company to secure a fresh round of capital via a qualified institutional placement (QIP).
The Bengaluru-based company is now looking to scale down unprofitable units such as Snacc.
Employee impact
Snacc, launched as a pilot, was operating just in Bengaluru and Gurugram and had not scaled much in the 12 months. Swiggy, over the next 48 hours, to accommodate the impacted employees.
“We are absorbing people under our different businesses and providing them with transition support,” the mail read.
The Snacc app had gone from conceptualisation to being live on the Play Store/App store in less than 16 days.
“There was a player (named) Zepto that launched a Zepto cafe. The moment we decided to do something of our own, as a pilot called Snacc, it took us 16 days to put the application out there,” Sriharsha Majety, group CEO, Swiggy, told investors in London at an event organised by Prosus, one of Swiggy’s largest backers.
Snacc was launched to cater to people who plan their meals closer to time.
“There are many times when you can’t plan your life around 30 to 40-minute food deliveries. If you’re, for example, taking off for your office commute in 20 minutes, you feel like you want to get a coffee, maybe you can’t do that. If you’re in between meetings at the office and you forgot to get your lunch, you only have a 20-30-minute break, you can’t plan your life around it,” CEO Majety, had told Moneycontrol earlier.
“That’s how the first incidence of usage will begin. But once people get used to it, there’s no going back. That’s what we’ve seen in quick commerce as well,” he had added.
Snacc served Indian breakfast, coffee, bakery items, short eats, cold beverages, eggs and protein, among other options. While it had tied up with brands such as The Whole Truth, and others in some sub-categories, the rest of them are unbranded and are sourced from third-party food providers.
Experiments vs profits
More recently, Swiggy’s food delivery CEO Rohit Kapoor had told Moneycontrol that Swiggy will not stop experimenting only because it has to improve its profit profile.
Kapoor said Swiggy does not intend to slow experimentation in food delivery, regardless of how capital is allocated to other verticals such as quick commerce.
“Whenever we feel there is an opportunity to experiment, we have not stopped,” he said, pointing to initiatives such as Bolt, 99Store, Snacc and Toing. “If there is a strong idea and it requires interim investment, we are not shying away from it,” he had said.
Source: Msn.com
Source: OfficeNewz
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