In a move that underscores the harsh realities of ultra-fast delivery economics, Swiggy has decided to shut down Snacc, its dedicated 15-minute food delivery app, just a year after its launch. The decision, communicated through an internal email dated February 19, signals a strategic reset as the Bengaluru-based company doubles down on long-term sustainable growth.
Credits: Moneycontrol
Why Snacc Is Being Discontinued
Snacc was launched in January 2025 at a time when 10- and 15-minute food delivery had become the industry’s newest obsession. However, despite early signs of product-market fit, the broader economics proved difficult.
“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,” the internal communication stated.
Though specific figures were not disclosed, the economics of ultra-fast food delivery are notoriously tough. For context, rivals have struggled too. Blinkit’s Bistro, operating at a larger scale, reportedly lost around ₹150 crore while generating less than ₹20 crore in revenue over a nine-month period — highlighting just how intense and capital-heavy this segment is.
The 16-Day Sprint to Launch
Snacc’s origin story was ambitious and swift.
When competitors such as Zepto launched Zepto Cafe, Swiggy responded with remarkable speed. According to group CEO Sriharsha Majety, the Snacc app went from concept to live on app stores in just 16 days.
At an investor event hosted by Prosus in London, Majety recalled how the team rapidly built and deployed the pilot product to test demand in the ultra-fast category.
Snacc was rolled out initially in Bengaluru and Gurugram as a limited pilot. But in the 12 months since launch, it did not scale meaningfully beyond those markets.
The Promise of 15-Minute Food
Snacc was built for a very specific use case — consumers who plan their meals at the last minute.
Imagine rushing to work in 20 minutes and craving a coffee. Or being stuck between back-to-back meetings with only a short lunch break. Traditional 30–40-minute food delivery windows don’t work in such scenarios. That’s the gap Snacc aimed to fill.
The menu featured Indian breakfast items, coffee, bakery goods, short eats, cold beverages, eggs, and protein snacks. While it partnered with brands like The Whole Truth in certain categories, many products were unbranded and sourced from third-party food providers.
Majety had previously expressed confidence that once users experienced ultra-fast delivery, adoption would accelerate — similar to what happened in quick commerce grocery.
But converting that convenience into profitable scale proved harder than anticipated.
A Competitive Battlefield
The ultra-fast food delivery space quickly became crowded.
Alongside Blinkit’s Bistro and Zepto Cafe, smaller players such as Accel-backed Swish began gaining traction with both users and investors. Meanwhile, mobility platform Rapido has also been charting plans to enter the food delivery segment, intensifying competition further.
For Swiggy, this came at a time when the company has been reporting back-to-back quarterly losses. It recently raised fresh capital via a qualified institutional placement (QIP) to strengthen its balance sheet.
Against this backdrop, scaling an unprofitable experimental vertical became harder to justify.
What Happens to Employees?
Swiggy has said that it will accommodate impacted employees over the next 48 hours.
The internal email noted that team members from Snacc would be absorbed into other parts of the business, along with transition support. This indicates that while the product is being shut, the company is attempting to retain talent and redeploy it strategically.
Experimentation vs Profitability
Interestingly, the shutdown comes even as Swiggy leadership has publicly emphasized its commitment to experimentation.
Food delivery CEO Rohit Kapoor had recently stated that Swiggy would not stop experimenting simply to improve short-term profitability. He pointed to initiatives such as Bolt, 99Store, and Toing as examples of ongoing innovation.
“If there is a strong idea and it requires interim investment, we are not shying away from it,” Kapoor had said.
Snacc, however, appears to be a case where experimentation met economic reality.
The Bigger Picture
The closure of Snacc highlights a critical lesson in India’s evolving delivery ecosystem: speed alone is not enough. While consumers may love the promise of 10- or 15-minute food, building a unit-economics-positive model in that time frame remains a formidable challenge.
For Swiggy, the move reflects strategic discipline rather than retreat. The company is choosing to conserve capital, streamline focus, and prioritize initiatives with stronger long-term potential.
In the hyper-competitive world of food delivery, survival may depend not just on who moves fastest — but on who knows when to slow down.
