SuprDaily, Swiggy’s subscription-based morning delivery service is being phased out, the company’s cofounder Phani Kishan revealed in a blog post on Tuesday. Swiggy had purchased Supr Daily, a grocery delivery app used to purchase milk, bread, and other foodstuffs, back in 2018. Supr Daily hasn’t had a smooth journey so far. Swiggy cofounders Puneet Kumar, Shreyas Nagdawane, and Rohit Jain left the company when it announced that it has incorporated its subscription-based service into a business unit within the parent company Bundl Technologies.
Supr Daily’s chief executive officer, Phani Kishan, informed employees through email that the company will cease operations in Delhi NCR, Mumbai, Pune, Hyderabad, and Chennai. It intends to continue providing services in Bengaluru and expand its operations in the city. Swiggy momentarily discontinued its pick-up and drop-off Genie service in Mumbai, Hyderabad, and Bangalore before announcing the closure of Supr Daily in most cities.
“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.
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Kishan claims that Supr Daily has expanded from 6,000 orders per day in mid-2018 to 200,000 daily orders across six cities. “We are announcing our decision to scale down operations of Supr Daily and restructure ourselves to help accomplish our business-market fit goals”, he continued. “It’s a choice we’ve debated for many hours over the last few weeks, and I’d want to give some context to help you understand it better”, Kishan added.
Despite the fact that Supr Daily has delivered a large number of orders, the service is still not profitable and is losing money on a daily basis. In his email, Kishan stated, “Unfortunately, we have yet to demonstrate a clear route to profitability. Today, we find ourselves spending a substantial amount of time and money managing the firm, distracting ourselves from our fundamental aims of building business market fit”.