Foodtech major Swiggy shuts down premium grocery delivery vertical

Prosus-backed foodtech major Swiggy has pulled the plug on its premium grocery delivery pilot program, Handpicked, which was functional in several parts of Bengaluru. 

Swiggy confirmed the development and also revealed that no jobs have been impacted so far from the move. The spokesperson said, "At Swiggy we're continuously experimenting with new propositions in line with our vision to enable unparalleled convenience to consumers. Handpicked was being piloted in a few zones in Bengaluru and we have had several positive learnings from it."

Business Today reported a few days ago that the company has started charging a Rs 2 platform fee on food orders being delivered in cities such as Bengaluru, Hyderabad, and Chennai. This charge is being levied only on the food orders and not on orders made on Swiggy’s quick commerce vertical, Instamart.

According to Swiggy, charging the fees helps them “operate and improve our platform and enhance app features to deliver a seamless app experience.”

The food delivery giant has been endeavouring to cut costs, dispose of the non-viable business verticals and aim for profitability. The company is reportedly undertaking these activities to make a debut on the stock market soon. 

The company shut down its meat marketplace vertical in January and also laid off 380 employees as part of a company-wide restructuring activity. 

Swiggy achieved a ‘decacorn’ status last year after it raised about $700 million from US-based investment firm Invesco. However, a recent filing revealed that Invesco has slashed Swiggy's valuation to $8 billion from $10.7 billion.

Decacorns are privately-held firms whose valuation exceeds $10 billion.

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