Food delivery platform Swiggy has announced that it will scale down operations of Supr Daily in five out of six cities to attain “business-market fit goals”. Supr Daily is a subscription-based delivery service for milk, daily essentials, and groceries.
“As a part of the restructuring, Supr Daily will suspend operations in Delhi-NCR, Mumbai, Pune, Hyderabad, and Chennai,” the company stated in a blog post on Tuesday. “We will continue to serve users in Bangalore (Bengaluru),” it added.
“We have a detailed transition and closure plan in place to make it less painful for our users and brand and vendor partners. We will continue to serve users in Bengaluru and double down on our efforts here,” Phani Kishan Addepalli, co-founder of Swiggy and CEO, of Supr Daily, said.
Supr Daily services will be suspended in the cities mentioned above from May 12, 2022. In the blog post, the company said that it would continue offering existing subscription orders of certain milk items till May 12, 2022. “We will not take any new orders from May 10th, 2022,” it added.
“The refund of your wallet balance and remaining days of Supr access memberships (if applicable) will be initiated by May 12th. It should reflect in the source of payment in 5 to 7 business days,” the firm further said.
The restructuring will have an impact on employees operating in these five cities and some corporate employees as it right-sizes the organization.
When Swiggy acquired Supr Daily in mid-2018, it was serving close to 6,000 orders a day in a few suburbs of Mumbai. Over the last four years, Supr Daily services have scaled to fulfill 200,000 daily orders across six cities, but profitability remains elusive.
Supr Daily was founded in 2015 by IIT Bombay graduates Shreyas Nagdawane and Puneet Kumar. Swiggy had acquired the subscription-based startup in 2018 when it was managing a total of about 6,000 orders a day in select cities.
Halt on other services
Meanwhile, the company also confirmed reports that Swiggy Genie is temporarily unavailable in 3 out of the 68 cities. The cities where these services have been impacted include—Mumbai, Hyderabad, and Bengaluru.
Commenting on the development, a Swiggy spokesperson said, “Swiggy Genie is temporarily unavailable in 3 out of the 68 cities. The cricketing and festive season has resulted in a surge in demand for servicing the requirements for both the food marketplace and Instamart, requiring us to prioritize these deliveries accordingly. We hope to resume Swiggy Genie in the impacted cities soon.”
According to a report in the Economic Times, Genie service has been unavailable for the past 7 days.
The company is prioritizing food delivery and its quick commerce business Instamart, the Economic Times said in its report.
Due to rising fuel prices and inflation, many food and grocery delivery companies have been unable to raise the wages of their riders, causing supply-side issues across the gig economy.
The demand for gig workers in the quick commerce industry has exacerbated the supply shortage, especially in Bengaluru, Mumbai, and New Delhi. Attrition and hiring new resources are also becoming harder, the report added.
