Food delivery platform Swiggy has announced that it will scale down operations of Supr Daily in five out of six cities to attain "business-market fit goals". Supr Daily is a subscription-based delivery service for milk, daily essentials and groceries.
"As a part of the restructuring, Supr Daily will suspend operations in Delhi-NCR, Mumbai, Pune, Hyderabad and Chennai," the company stated in a blog post on Tuesday. "We will continue to serve users in Bangalore (Bengaluru)," it added.
Swiggy acquired Supr Daily in mid-2018.
"Over the last 4 years, we have scaled Supr Daily services to fulfil 200,000 daily orders across six cities and have created a niche in solving a very important consumer need. While we are now an inalienable part of our consumer's lives, we, unfortunately, are yet to demonstrate a clear path to profitability," Phani Kishan Addepalli, Co-founder, Swiggy and CEO, Supr Daily, 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 & 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," Mr Addepalli added.
Meanwhile, Swiggy's pick-up and drop-off service, Genie, temporarily halted operations in some cities citing "operational constraints".