blog post on Tuesday.
Swiggy acquired Supr Daily, a delivery app for milk, bread, and other grocery items, in 2018. Kishan, who was given the cofounder title last year, has been overseeing Supr Daily as its chief executive officer.
In September last year,
Supr Daily’s cofounders Puneet Kumar, Shreyas Nagdawane and Rohit Jain exited Swiggy as the company said it had integrated its subscription-based service into a business unit within the parent company Bundl Technologies.
Kishan told employees in an email that Supr Daily will suspend operations in Delhi NCR, Mumbai, Pune, Hyderabad and Chennai. It plans to continue its services in Bengaluru and further its efforts in the city. The scaling back will result in employee layoffs, too, Kishan wrote in the email.
“The restructuring has an impact on employees operating in these five 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,” Kishan said in the email, which was published as a blogpost on Supr Daily’s website.
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The announcement to shutter operation of Supr Daily in most cities comes close on the heels of Swiggy temporarily halting its pick-up and drop-off Genie service in Mumbai, Hyderabad, and Bangalore, which ET reported first online on Tuesday.
“..we are announcing our decision to scale down operations of Supr Daily and restructure ourselves to help hit our business-market fit goals. It’s a decision we have deliberated for countless hours over the last few weeks and I would like to share the context to help you understand this better,” he added. Kishan said Supr Daily had grown from fulfilling 6,000 orders a day in mid-2018 to 200,000 daily orders across six cities.
“ .. we, unfortunately, are yet to demonstrate a clear path to profitability. Today, we find ourselves in a situation where we end up spending a significant amount of time and money in managing the business – distracting ourselves from our primary goals of establishing the business market fit…” he said.
The other players in the subscription-based morning delivery segment include BigBasket’s BB Daily and Milkbasket which was acquired by
, last year.
Swiggy has been expanding its quick commerce business under Instamart. In an earlier interview with ET, Sriharsha Majety, cofounder and CEO, had said that there was no cannibalisation that
Supr Daily faced with the expansion of Instamart and that they both solved different consumer needs.
He, however, had admitted that there’s always some overlap between any two kinds of grocery offerings. ” I think we don’t think of convenience as just super fast…because convenience is when consumers want it.. and a lot of consumers actually want to just start their day with fresh produce that is useful for the meal then…” Majety had said. ” You can’t force-fit one into the other and say this is Swiggy grocery. Consumers are different,” he had told ET.
