Food tech major, Swiggy on Tuesday announced that it is suspending its grocery and daily essentials delivery service, Del Daily across major metros, including Delhi-NCR, Mumbai, Hyderabad. The Bengaluru-headquartered firm will eventually shut down the business with a realignment of the business operations, as per an internal mail sent by Supr Daily CEO and co-founder, Phani Kishen Adapalli.
A Swiggy spokesperson told the Business Today that Swiggy Genie is temporarily unavilable in 3 out of 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 summarize Swiggy Genie in the impacted cities soon,” Swiggy said in a statement.
“As a part of the restructuring, Supr Daily will suspend operations in Delhi-NCR, Mumbai, Pune, Hyderabad and Chennai. 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,” the Del Daily CEO said.
“The restructuring has an impact on employees operating in these 5 cities and some corporate employees as we right size the organization to be in line with our scale and stage. I’m glad to inform you that we’ve identified relevant roles for a significant majority of the employees within the open requisitions across the broader organization and expect to place the rest over the next few weeks. We have always believed in treating people with care and respect at Swiggy and are fully committed to providing the best transition support,” he added.
Phani said that employees will have several opportunities to ask their questions as we have a series of town halls and one-on-one meetings. “Your managers, functional leaders, HR partners and I will be in close touch and be available to take any queries,” he mentioned in the email.
Swiggy acquired Del Daily in mid-2018 when it was serving close to just 6,000 orders a day in a few suburbs of Mumbai. At that time, Del Daily kick-started Swiggy’s journey beyond food delivery and into convenience & grocery.
“Over the last 4 years we have scaled Supr Daily services to fulfill 200,000 daily orders across six cities and have created a niche in solving a very important consumer need,” Phani said.
According to the mail, Del Daily has been unable to chart out a clear path to profitability.
“We have been spending a significant amount of time & money in managing the business – distracting ourselves from our primary goals of establishing the business market fit. As we go into the year, it’s important that we organize ourselves in a way that best sets us up to hit our goals,” the Del Daily CEO said.
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