Swiggy-owned subscription commerce platform Supr Daily is downscaling its operations from five cities, according to three people aware of the company’s plan. This would be the second major product roll back from the Bengaluru-based company this week.
SuprDaily is also communicating the rollback to users through notification.
According to the people cited above, the company will continue to operate in its largest market Bengaluru. As per its app, Supr Daily is operational in six cities Delhi (NCR), Mumbai, Hyderabad, Pune and Chennai.
“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 company said in a blog post in a response to Entrackr’s queries.
The pause on operations is a little surprising only because of the fact that Swiggy remains well funded to absorb losses from these ops. However, at another level, with newer competitors, especially Zepto still in cash burning mode, Swiggy might have found it pointless to lose money in the near future with no clarity on when the haemorrhaging would stop.
For consumers getting pampered by these loss-making firms, Swiggy’s pullback signals the beginning of the end of good times.
Swiggy had bought Supr Daily in mid 2018 and brought it under Swiggy in September last year. At the time of the integration, its co-founders Puneet Kumar, Shreyas Nagdawane and Rohit Jain had quit the company.
“While we are now an inalienable part of our consumer’s lives, we unfortunately are yet to demonstrate a clear path to profitability… 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,” mentioned the blog post.
Update: The story has been updated to add excerpts from Supr Daily’s blog.