Swiggy shuts down Supr Daily operations in five cities citing losses
The move will impact employees operating in the five cities – Delhi-NCR, Mumbai, Pune, Hyderabad and Chennai — as well as some corporate employees. Also, Swiggy has halted the pick-and-drop service, Genie, in multiple cities due to surge in demand.
Food and grocery delivery platform Swiggy said it will suspend operations of its subscription-based delivery service, Supr Daily, in five cities, as it is yet to demonstrate profitability, as consumer internet companies focus on cutting spends in an increasingly challenging environment.
The announcement came on a day when Swiggy also halted its pick-and-drop service Genie in multiple cities. To be sure, unlike Supr Daily, which is being scaled down for business reasons, the company said Genie will not be temporarily available in a few cities due to a surge in demand, resulting in a shortage of delivery partners.
Supr Daily, a subscription-based delivery service for milk, daily essentials and groceries, was founded by IIT Bombay graduates Shreyas Nagdawane and Puneet Kumar in 2015 and was acquired by Swiggy in 2018. It rejigged the leadership for Supr Daily in September last year in a bid to unlock value and accelerate growth. Phani Kishan, who was elevated to co-founder was given charge as the CEO of Supr Daily. The support functions of HR, Admin, Legal, IT and Finance from Supr were integrated into the relevant functions with Swiggy, while it continued to have dedicated business teams.
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 fulfil 200,000 daily orders across six cities, but profitability remains elusive.